The current average gas price per gallon in Los Angeles is $4.48 in 2021 up 47.4% from the 2020 average of $3.04. The upward trend in gas prices will likely persist as an energy crises plagues Europe and Asia coupled with rising demand for gas in the U.S. as COVID-19 restrictions are lifted. The average fuel tank capacity is roughly 12 gallons which means a $1 increase per gallon can mean paying an additional $12 at the pump. For those that drive frequently and don’t have the most fuel efficient vehicles, rising fuel costs can put a dent in your wallet. Knowing that many people will likely not change their driving habits or opt to take public transportation, there are three effective ways to save on gas.
1. Gas Credit Cards
When we go to the gas station, we either pay with credit or cash. Those paying with credit get points with every type of purchase, but some credit cards are better than others at gas savings. The best gas credit cards usually have a 3 to 5% savings on gas purchased coupled with no annual fees. The average cost of gas per month is roughly $250 or about $3,000 per year meaning that with a 5% cash back on gas purchases, you can save roughly $150 per year. Cards like the Bank of America Customized Cash Rewards Credit Card charges no annual fee and allows you to choose a category each month to save 3% including gas, dining, travel, and etc. The card 3% cash back category is capped at $2500 each quarter after which you will get 1%, but assuming your monthly gas spend is average, you would remain comfortably under that cap.
If you are an existing or are thinking of becoming a Costco member, the Costco Anywhere Visa Card by Citi can be an effective card for not only gas purchases, but for restaurant and grocery purchases. The Costco card doesn’t have an annual fee but requires you to be a Costco member which costs roughly $60 per year. This card gives you 4% cash back on gas purchases up to $7,000 every year and 2% cash back on your Costco purchases.
2. GetUpside
The moment that you exit a busy freeway ramp, you may notice that there are several gas stations that are clustered together often offering the same type of gas for the same price. In 2016, Founders Alex Kinnier and Wayne Lin co-founded GetUpside that negotiates discounts with gas stations on the price of gasoline that is posted on a free app. The GetUpside app allows gas stations to sell discounted gas without revealing the true price to neighboring gas stations thus avoiding a price war. As a result, the GetUpside app can help you save up to $0.25 per gallon.
After downloading the GetUpside app, you will have access to both participating gas stations and grocery stores that will often provide cash back on your total bill. After creating an account and inputting the card that you will use to pay for your gas, you will be eligible to buy gas at the participating gas station that you choose. You will usually receive your cash back within 24-48 hours. Assuming you filled up your 12 gallon fuel tank every week, consistently using the app can potentially save you $0.25 per gallon or $3 every week, totaling a potential annual saving of $144.
3. GasBuddy
You have or know someone that has driven around a couple of blocks to find the gas station that sells the cheapest gas. Gas buddy allows consumers to see all the gas prices at all stations around your current location in order to both save you time and money. On top of finding the best prices nearby, Gas Buddy allows you to save on every gallon by using their prepaid gas card that pulls funds from your designated account every time you make a gas purchase. According to Gas Buddy, you can save up $0.25 per gallon, but can save up to $0.40 per gallon if you enroll in Gas Buddy Premium which costs $9.99 per month and guarantees that you save at least $0.20 per gallon. Gas Buddy also allows you to make purchases with participating merchants including Uber and Old Navy and earn gas back.
Paying for Gas accounts for roughly 3% of a family’s annual spend. For those that need to drive frequently, gas expenses can accumulate quickly and can put a dent in your wallet. However, using the following methods either exclusively or in combination can help mitigate rising gas costs. Many people need to drive and often don’t have the luxury of swapping out their existing vehicle for a new fuel efficient vehicle. The following methods above are free and can be implemented immediately. Using both the GetUpside and Gas Buddy app can help you save up to $0.50 cents per gallon which is roughly $288 per year assuming you fill up your 12 gallon tank once a week though whether or not the extra effort to implement these methods are worth the savings is up to you, but to me it’s crystal clear.
