In Australia over the last few months petrol (that is what we call gas/fuel in Australia) has been getting super expensive. I personally have seen prices increase from a modest $1.15-$1.20 range up to about $1.45-$1.60 which is what it is now. As far as I can tell there are 2 main causes for the increase in prices.
- The price of Oil over the last year has gone from around $79 up to $106 (which is a pretty big increase for 1 year) as you can see in my FX chart below (Interesting in FX Trading?).
- The Aussie Dollar has fallen like a rock over the last 6 months from highs of around $1.05 down to under 90 cents.
Obviously other countries will not have had such steep changes in their local currencies and that will impact on local fuel prices, but here in Australia people are definitely starting to take notice. There seems to be a piece on petrol prices every night on the news, and even people at work have started to complain about how much it is costing to fill up their cars. Unless you have billions of dollars or work for an investment bank, you probably aren’t going to move the oil or AUD/USd currency markets to make prices cheaper, so it might be worthwhile looking at other alternatives in order to save some cash when it comes to your car.
How can you save money on fuel?
There are a couple of really easy things you can do to limit the amount of money you are spending on petrol for your car.
- Shop around for prices – I’m not saying you should go over to the other side of town to get the best prices, but if you know there is a petrol station that is selling petrol on the cheap and it is only 5 minutes down the road, it might be worth your while checking them out.
- Wait for the cheap day before getting fuel – The price of petrol seems to fluctuate based on days of the week. One day it will be $1.45 and the next it will be $160. Take note of the prices whenever you drive by and make sure you only fill up on the cheap day. 15 cents a litre might not sound like much, but if you are filling up a 50 litre tank then that is $7.50 you have just saved. Do this weekly over an entire year, and you will save almost $400.
- Don’t be a lead foot – Every time you plant your foot on the gas you are spending money out the tail pipe. Normally there is no need to speed up to the speed limit. So take you time and don’t flog the accelerator pedal.
- Carpool – Carpooling is a great way to save money on fuel. If you can organise to only drive every 2nd day you will halve your petrol costs.
- Avoid the peak rush – No one likes sitting in traffic gridlock and what is worse is that all that stop start driving is costing you heaps in petrol. If you can avoid the peak times then you will save both time and money.
What tips do you have for saving money on fuel?