Daily Fuel Economy Tip

Driving a Fuel Efficient Car is Attractive

With all of the gloom and doom surrounding the economy, the housing market and oil and gasoline prices, it’s understandable that so many of us feel so pessimistic right now.

But, if you drive a car that gets great fuel economy, you now have a reason to smile: it’s very likely that the opposite sex now finds you more attractive than ever!

What, you don’t believe me? Check out the following (very non-scientific) reasons why you’ve gone from the little nerd that couldn’t to a fuel sipping sex symbol:

It shows you’re a modest person. By driving an unassuming and fuel efficient car, you’re letting everyone know that you don’t need to be flashy or loud in order to get noticed. Your calm, quiet, easy on the accelerator demeanor has definitely gone a long way to show the opposite sex that you’re quite a catch. Almost a quiet confidence.

It shows you’re not wasteful. Why use two gallons of gas to go 10 miles, when you can get the job done with just a quarter-gallon? You’re all about efficiency - and that’s why you’re so good looking.

It shows you’re good with money. Not only does it usually cost less to buy a smaller car, but over the time you own the vehicle, you’ll probably spend a lot less on fuel, tires and insurance. With that money you save, you can splurge on gifts every once in a while, or have plenty of cash on hand for a rainy day.

It shows you care about the environment. Obviously, this is the very in thing right now - if you’re not “going green” there’s no telling how far you’re likely to fall down the social food chain. And let’s be honest, nobody wants to be with the low person on the totem pole.

It shows you don’t have to make up for shortcomings by overcompensating and buying a flashy sports car or big truck. No further commentary is necessary.

For those of you who drive gas guzzling monster trucks or suped up sports cars, it’s not too late to redeem yourself in the eyes of the opposite sex. You can always keep your current vehicle, but just drive it less and walk/use public transportation more, or you can trade up and get something with a little less zip and a little more sip.

Posted in Miscellaneous | 2 Comments »

People Somewhat Optimistic About The Possibility of $100 Oil

The last time the price of crude oil closed below $100 a barrel was back on March 3, 2008. As of this past Friday - four months since the final sub-$100 close - the price of crude oil closed at a record high of $145.29 per barrel.

Increasing global demand and stagnating (at best) supplies coupled with a weak dollar have been the major contributing factors to oil’s astronomical climb over the last several years. And to make matters worse, in both the short term and long term, it doesn’t appear as if things will get significantly better for either supply and demand or the dollar. This has led many prognosticators to warn the biggest price shocks may be yet to come.

Despite all of the gloom and doom regarding oil and gasoline prices, there are still plenty of people out there who believe oil prices will soon pop and within the next 12 months, we will see prices drop back to the $60 to $80 range.

So, to get a gauge of where Daily Fuel Economy Tip readers fall in this spectrum, I recently had a poll up on the site which very simply asked: “Do you believe oil will ever drop below $100 per barrel again?” Here’s how responses came back:

• 41% believe oil will fall below $100 again
• 59% believe oil will never fall below $100 again

While these numbers are clearly in favor of those who believe sub-$100 oil is a thing of the past, I found it kind of staggering that over 40% of respondents think $100 oil will have at least one last hurrah.

(Full disclosure - I don’t think oil will ever close below $120 again, let alone $100.)

For me, the most convincing argument for oil pricing holding at current levels and/or climbing even higher centers around the two most recent asset bubbles - the tech stock bubble of the late 1990s/early 2000s and the currently unwinding housing bubble. Let me try to explain:

In both the tech and housing bubbles, asset prices obviously ended up much higher than the asset’s underlying value. Whether it was the thought of future earnings, or a product of creative financing/overpriced appraisals, the prices for both tech stocks and homes became completely out of whack with historical levels. At some point, things were bound to correct.

Now, there are plenty of people who are arguing the same thing about oil prices - there hasn’t been a dramatic shift in supply/demand and the falling value of the dollar has artificially propped up. While this may be true, there’s another, much more significant factor that needs to be taken into account:

OIL IS A FINITE SUBSTANCE. WE CAN’T CREATE ANY MORE AND EVERY DROP WE USE REDUCES THE AMOUNT WE HAVE LEFT.

The reason stated above is what I believe has caused the dramatic spike in oil prices. We’ve simply come to realize that we are quickly closing upon peak oil and there is a premium to be paid for that. This problem is never going to go away and will only get worse the further along we move into the future.

This is why I’m on the side of the 59% of readers who believe the days of sub-$100 oil are gone forever.

Posted in Oil Prices | 3 Comments »

Online Gas Price Sites - Do They Really Save You Money?

With the national average price of gasoline holding steady above $4 per gallon, it seems as if more and more people are using online gas price sites like Gasbuddy.com and GasPriceWatch.com to help determine where they’re going to go to fill up. While there’s certainly plenty of satisfaction in knowing you’ve picked up the cheapest gas in the area, is it possible that these sites are actually causing you to spend more on gas even if you’re paying less at the pump?

Confused? Let me give you the following example:

You drive a car that gets, on average, 20 miles per gallon and has a 10 gallon tank. Before leaving your house to fill up the car, you check out GasBuddy.com and see that the gas station closest to your house, which is only a mile away, is selling regular unleaded gas for $4.15 per gallon; however, another station that’s only six miles from your house is selling regular unleaded gas for $4.00 per gallon.

Certainly, it would be a no brainer to go to the $4 per gallon station. After all, assuming you have to fill up all 10 gallons, you’re going to save yourself a whopping $1.50:

$4.15 - $4.00 = 15 cent savings per gallon x 10 gallons = $1.50 savings

Now, if this is where the analysis stopped, you’d probably be feeling pretty good about your decision to go to the farther away station. I mean, $1.50 doesn’t seem like much, but you’d much rather have it in your account than hand it over to the gas station clerk, right?

As I’m sure you’ve already guessed, this isn’t where the analysis stops, so let’s continue:

At 20 mpg, you’re burning 1/20th of a gallon of gas for every mile you drive.

1/20 x 2 miles (close station) = 1/10th of a gallon of gas used for the round trip.

1/20 x 12 miles (farther station) = 3/5ths of a gallon used for the round trip.

$4.15 x 1/10 = 41.5 cents in burned fuel to go to and from the closer/more expensive gas station.

$4.00 x 3/5 = $2.40 in burned fuel to go to and from the farther/less expensive gas station.

So, by going to the farther away gas station, here’s what your net savings actually ends up being:

$1.50 + $.415 - $2.40 = -$.485.

By driving out of your way to save 15 cents per gallon of gasoline, you actually end up being about 50 cents in the hole. Again, I know these numbers don’t seem like much, but wouldn’t you rather keep your money? Besides, over time, ever little bit adds up.

It’s probably unlikely that you’ll do this sort of analysis before you decide where to purchase your next tank of gas, however, it is something that you should probably keep in mind. Long story short, unless you’re going to save a significant amount on each gallon of gas, or you need to fill up a mammoth tank, its probably not worth it to go out of your way to purchase gas.

Posted in Creative Ideas, Drive Less | 6 Comments »

Fuel Economy Tip - The Two Mile Rule

There is little doubt that the recent spike in the price of gasoline has caused many Americans to change their driving habits. Whether it’s a drastic change like picking up and moving, or a more subtle change like making sure to drive the speed limit, chances are pretty good that we’ve all done something to help offset higher gas prices.

One way many people have tried to reduce the pain at the pump is by walking or riding a bicycle when they need to take “short trips.”

Considering a large portion of our driving is done within a close proximity to our homes and places of employment, implementing this change into your life could considerably reduce the amount of money you pay for gasoline.

I know some of you out there think this is a waste of time and isn’t worth trying out. So, for those of you who are skeptical of making such a change, I’d like to present to you the argument for the “Two Mile Rule.”

Very simply, the Two Mile Rule says that, when safe, you either walk or ride your bike when you’re going some place within a two mile radius of your home, work, etc. The only exception to this rule would be if you absolutely needed your vehicle - e.g. you’re going to the grocery store and are picking up way too many items to carry home.

Here are the three main reasons why you should follow the Two Mile Rule:

1. You’ll undoubtedly reduce your gasoline consumption. Obviously, if you’re not driving your car, you’re not going to be using gas. Also, short driving tends to be marred by lots of stop signs, traffic lights, and needless idling, all of which do a great job of sucking gas and reducing your fuel economy. And, like I said before, it’s likely that much of your driving consists of these short trips. If you can eliminate these trips, you should see a significant savings.
2. Less wear and tear on your vehicle. It doesn’t take a degree in mechanical engineering to know that the more you drive your car, the more wear and tear you put it through. So, if you can reduce the number of miles you drive, you should expect to increase your vehicle’s lifespan, which over the time you own the vehicle, could save you thousands of dollars in repairs, insurance and vehicle replacement cost.
3. You’ll end up in much better shape. In addition to the health benefits, by losing weight you’ll increase your vehicle’s fuel economy when you do have to get behind the wheel. As you probably already know, for every extra 100 pounds you carry around in your car, you reduce its gas mileage by 2%. So, if you can find a way to lose 25 pounds by being more active (assuming you need to lose the weight), you should see a slight increase in fuel economy.

Over the last couple of weeks, I’ve started to incorporate the Two Mile Rule into my driving routine. Whenever possible I try to walk or ride my bike. I’ve even started riding my bike 16 miles round trip to and from work. A bit outside the two mile radius, I know.

While it was a pain when I first started, I’m certainly glad I kept with it. I feel like I’m in much better shape, I’ve dropped eight pounds and I’ve been able to add a couple of days to each tank of gas. And, considering my car’s starting to get up there in age, I’m hoping that I’m extending its lifespan as well.

On that note, give the Two Mile Rule a try.  Your bank account, car and body will thank you.

Posted in Drive Less | 6 Comments »

$4 Gas - A Look Back

Now that the average price for a gallon of regular unleaded gasoline has finally hit the $4 mark, I figured it would be a good time to reflect on how far our perspective regarding gas prices has changed over the last year or so.

On May 30 of last year, I asked Daily Fuel Economy Tip readers to predict where they thought gas prices would be in one year. Just less than half of the respondents - 49% to be exact - said that gas prices would be at or above $4 a gallon. The remaining 51% predicted prices would be less than $4 a gallon. At the time of the poll, the national average gas price was roughly $3.10 per gallon.

Then in late December of last year, again, I asked if Daily Fuel Economy Tip readers expected gas prices to climb above $4 per gallon during 2008. Not surprisingly, this time, the percentage of respondents expecting $4 gas climbed. In fact, 71% of respondents said they expected $4 gas, and an additional 11% stated they were unsure if gas prices would break the $4 mark. At the time of that poll, the national average gas price was roughly $3 a gallon.

Finally, in early March of this year, as the price of gas was on the verge of shattering its all-time high, I again asked Daily Fuel Economy Tip readers how certain they were that 2008 would see $4 gas. The results were very much in line with the December poll with 51% of respondents saying they were 100% certain of $4 gas, while an additional 31% of respondents said $4 gas was likely. At the time of this poll, the national average price was roughly $3.20 per gallon.

So, here we are now, a week into June 2008 and we’ve finally crossed the $4 mark and “validated” the beliefs of those of us who saw this coming nearly a year ago.

Inevitably, the question will now turn to “when do you expect to see $5 gasoline?”  Unfortunately, it’ll probably happen a lot sooner than any of us expect or would like.

Posted in Miscellaneous | 8 Comments »