The average price of gasoline reached an all-time high last March, reaching $4.33 per gallon. Gasoline prices stabilized at $4.03 this week, but are still more than 40% higher than a year ago. Soaring inflation and gasoline prices are hurting Americans, especially those with low to moderate incomes. Americans can expect to pay nearly $700 more per year, or $60 per month, due to rapidly rising gas prices.
The gas rises
The U.S. Department of Transportation (DOT) says the average person drove about 1,200 miles per month in 2019. The average fuel mileage for cars is around 24 mpg, which means most drivers will use close 600 gallons of gasoline per year.
A year ago it would have cost about $1,700 per year. With the recent spike in gas prices, Americans will now pay over $2,400 for the same number of miles, or $700 more per year. This works out to around $60 per month.
What options do you have?
Even with President Biden release emergency oil reserves, prices are expected to remain high. This is on top of the already high costs Americans are facing due to record inflation. According to the Department of Energy, aggressive driving, such as rapid acceleration and braking, can reduce your gas mileage by 15% to 30%. Gas mileage also decreases when driving over 50 miles per hour. Gas mileage generally decreases rapidly at speeds above 50 mph.
Learn about credit cards with cash back for gas purchases. Many gas station chains also offer loyalty programs, which can help offset the dramatic spike in gas prices. By paying more attention to your spending habits and driving more efficiently, you can better cope with price increases.
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