The ongoing uprisings in the Middle East, with the most recent and dangerous conflict now raging in Libya, have caused gas prices to surge by approximately 7 cents per liter in just a few days. This translates to an additional $5 or so for each fill-up. While this increase may not be life-changing for some, it is already having a significant impact on others. People are driving less, cutting back on other expenses to afford gas, and making changes to their lifestyles.
With the future uncertain and no clear indication of when gas prices might decrease, what can you do about it? Here are some strategies—beyond the usual advice—to help you cope with the current high gas prices:
Don’t Fill Up, Just Top Up: With gas prices fluctuating daily due to the ongoing unrest, it’s wise to only top up your tank instead of filling it completely. While prices have generally been rising, they can also drop, especially when significant political changes occur. For example, when the uprising in Egypt began, gas prices surged, but after the president was ousted, prices decreased. However, when the conflict in Libya—a much larger oil exporter—erupted, gas prices spiked sharply again. You can anticipate that once the Libyan regime falls, prices should decrease. By topping up rather than filling up, you can take advantage of any potential price drops.
Check Gas Price Forecasting Websites: If possible, and unless you need to fill up immediately, make it a habit to check gas price forecasting websites to see where prices are heading. I’ve been doing this for years, long before the current Middle East uprisings, and it has saved me hundreds of dollars annually. These sites can help you determine whether prices are expected to rise or fall the next day. Based on this information, you can decide whether to buy gas now or wait for a potential price drop. Check GasBuddy or Tomorrows Gas Price Today for gas price directions.
Make Use of Your Sick or Off Days: It may sound unconventional, but if you have a long commute, consider taking a day off to stay home, relax, or catch up on tasks. With gas prices as high as they are, you could actually save money by avoiding the commute. Of course, this advice applies if you’re a salaried employee with paid vacation or sick days. If you’re going to use those days eventually, why not take advantage of them now when it could save you money?
Put Off Unnecessary Long Trips: As we’ve mentioned, the current uprisings are temporary, and gas prices should eventually come down. If possible, try to reschedule any trips that involve long drives and significant fuel costs until prices stabilize.
Share a Ride or Take the Bus: If you haven’t carpooled or taken the bus in a while—or ever—now might be the perfect time to start. It’s a great way to save on gas and explore a new mode of transportation. Check if any of your colleagues live nearby and coordinate carpooling, alternating driving responsibilities every other day or week.
-Ditch loyalty in favor of a cheaper price: if you are used to going to a specific gas station to get their loyalty reward program points (i.e Airmiles), you may put that off for now and look for the station with the cheaper price. Where I live, there is a gas station that has no loyalty program, but the price is always about 3 cents cheaper than other more well-known stations with loyalty point programs. At 3 cents, you are looking at some 2 to 3 dollar per fill-up. And as per our ‘5 principles of Financial and Budgeting Success‘ , every bit helps, right?
With gas being a significant part of your budget, it’s crucial to stick to the amount you’ve allocated, even if prices rise sharply. By following the tips we’ve outlined above and planning carefully, you can avoid taking a major financial hit from these spikes.