Key insights
- Rising gas prices, driven by geopolitical tensions in Iran, are squeezing American consumers already struggling with inflation. A petroleum analyst suggests fuel-saving measures, but continued price increases could further strain household budgets and potentially impact the cost of goods transported by trucks, signaling a potential drag on consumer spending and economic activity.
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Gas prices at the pump have reached levels not seen since 2023, leaving drivers searching for ways to save.
After the U.S. and Israel began strikes on Iran in late February, gas prices spiked. Prices at the gas pump have continued to rise, with the national average as of March 20 at $3.91. That is an almost 8% increase from the week prior, and a 33% jump from a month prior.
If the war in Iran continues, gas prices will keep rising and could even increase the cost of goods delivered by truck or those that use vehicles and machinery in the U.S.
"The impact is really starting to add up when it comes to the increase in gas prices. And unfortunately, it doesn't look like there's necessarily going to be any slowdown just yet," said Patrick De Haan, a petroleum analyst at GasBuddy, a gas savings software company. "We could see the national average hitting the $4 a gallon mark here in the next week or so."
Investopedia spoke with De Haan about ways consumers can save money on gas amid rising prices.
Americans are already struggling with their budgets, with some selling their clothes and skipping meals to cope with the rising cost of living. Saving money on gas will be essential for many as the war in Iran continues.
Going the speed limit, or even driving five or 10 miles per hour below it, can improve your fuel efficiency.
"Fuel efficiency is a big part of how many miles you get per tank. Try to do things like go a little bit slower, reduce your acceleration," De Haan said.
Going five to 10 miles per hour less can save you between 27 and 54 cents per gallon for gas, the U.S. Department of Energy calculated. Avoiding excessive idling and using cruise control can also improve your fuel efficiency.
Removing excess weight, such as roof-mounted luggage racks or unnecessary items in your trunk, can also significantly improve your fuel efficiency. Removing 100 pounds of excess weight in your car can save you about 4 cents per gallon, according to the Department of Energy.
Some gas stations offer lower prices than others, especially those at wholesale membership clubs, such as Costco, Sam's Club and BJ's Wholesale Club, De Haan said.
Additionally, using apps like GasBuddy, Google Maps, and Waze can help you identify the gas stations in your area with the lowest prices. Doing so can save you around 10 to 20 cents a gallon, De Haan said.
"Sometimes the timing, the day, the week can matter as well," De Haan said. "Of course, in a situation where now, when prices are kind of actively climbing, it makes it more challenging."
Generally, Sundays are the cheapest days for gas, with Wednesdays through Fridays being more expensive, a recent GasBuddy analysis found.
Many gas stations offer free rewards programs that can save you some money on gas. Some credit cards also offer cash back on fuel purchases.
For some programs, you will have to wait and earn rewards to build up for further savings. However, some loyalty programs offer discounts immediately after you sign up. Some of these programs include: