Well, here we are just two weeks shy of what official road warriors (those men and women at the American Automobile Association) are calling one of the busiest travel days of the year. It seems like just yesterday that I was blogging about the busy summer travel season… but, alas, time waits for no man and no man likes having to wait in traffic SO with that in mind this section of our “Holiday Travel” series takes us back to the basics. Yes, this blog is for all you merry motorists making your way to grandma’s house for the holidays. It’s a trek our family makes each year and the experience has taught me that to survive the haul you need to work on preserving what’s in your wallet… and your sanity. I have tips for both, but let’s get started with the former.
“It’s All About the Benjamins”
A tad trite, but dead on when it comes to the subject of gas prices. With gas prices hovering at around $2.50 a gallon (at least in the Midwest) it seems most of us have cut back on driving, swapped our gas-guzzlers for economy cars (or other alternatives), or shopped around for the cheapest gas. If you continue to do the latter—you are on the right track. You’re wise to shop around — with prices constantly in motion, the cheapest gas may not be at the same station every time. For more tips on how to find the cheapest gas click here.
Holidays + Gas Prices DO NOT = Savings
Did you know that gas stations earn on average between 10 and 15 cents on a gallon of gas? It’s true, according to AAA, and ironically, station owners earn even less when prices are highest because they must shrink their profit margin to remain competitive. However, according to a recent study done by the University of California Berkley, gas station owners take another huge hit from credit card fees, which add up to about 2.5% of all purchases. Researchers give this example: When gas is at $2 a gallon, the station pays credit card companies 5 cents a gallon; when gas hits $3, that fee becomes 7.5 cents, which is more than half the station’s entire average profit. According to the study, in 2005, gas stations’ revenue from fuel grew 25%, while the fees they paid to credit card issuers jumped 40%, to $5.3 billion. Simply put, we (the driving public) are helping station owners make up for lost revenue.
Don’t Let The Name Fool You
I’ve seen them, you’ve seen them, we’ve all seen them. Those catchy descriptions tacked on to a fuel company’s product. For example, Chevron’s “Techron,” and Amoco “Ultimate.” The companies make you believe that by purchasing these blends you are helping to save the planet… and your engine. As I detailed in a previous blog—gas is gas and one is as good as the next.
Need more proof? According to AAA, additives help to clean your engine, but all gas does so-—it has to thanks to a 1994 ruling in which the government required that “detergents be added to all gasoline to help prevent fuel injectors from clogging.” What’s more, a recent AAA report revealed what most gas companies know, but members of the public don’t: gas suppliers share pipelines, so they all use the same fuel. So what’s the difference between a gallon of no-brand fuel versus a name brand one? According to AAA, “often just a quart of detergent added to an 8,000-gallon tanker truck.”
Check back for more money saving tips in future blogs.
Related Articles:
Holiday Travel: How To Save Money On The Way To Grandma’s House–Part 2
The Gas Pill-Will It Really Relieve The Pain At The Pump?
Pop Quiz: Test Your Fuel Savings IQ