The latest run-up in gasoline prices is now being experienced across the board.
According to the AAA, the national average for a gallon of gas is currently $ 4.94 after raising $ 5 per gallon earlier this month. At this time last year, the price was $ 3.07 per gallon.
According to a recent report by DailyPay, which surveyed more than 2,000 adults in May, the increase has put a strain on the ability of more workers to pay their costs and save for the future.
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Those who work overtime are working harder, the report said. Approximately 81% of people say that high gas prices have a negative impact on their ability to pay for basic needs.
As a result, 44% of households earn less than $ 100,000 a year, saying they are saving less than last year or not.
To meet the end, 22% of hourly workers said they would tap payday loans, one of the most expensive ways to get a loan.
President Joe Biden asked Congress to temporarily suspend the federal gas tax for three months to provide immediate relief from the prices at the pump. The federal tax is 18.4 cents per gallon of regular gasoline and 24.4 cents per gallon of diesel.
“Does it help? Yes, but having said that, I don’t think there’s much chance of success,” said Patrick De Haan, head of gasbudy petroleum analysis. “There’s a lot of politics intertwined here.”
Moreover, if the gas tax holiday coincides with rising wholesale fuel prices, consumers will not see much impact on the pump because the tax action is offset by higher costs, De Haan noted.
On the upside, prices have already started to decline due to the tumbling of oil, the main ingredient in gasoline.
“We’ve already seen a price drop, which is good news,” De Haan said. By the weekend of July 4, “I think we’ll be somewhere between 5 and 15 cents less.”
4 ways to save gas
With or without a federal gas tax holiday, there are ways to protect yourself a bit from the prices at the pump. Consumer savings expert Andrea Voroch has four tips:
- Track gas prices. Apps like GasBuddy, Gas Guru and AAA TripTik can track the cheapest per gallon at nearby gas stations. You can save up to 30 cents per gallon depending on where you fill it. Even if the difference is not high, it can add hundreds of dollars a year.
- Pay in cash. The price per gallon for credit card transactions is 10 cents to 15 cents per gallon. Instead of getting a lower price, pay cash or use a cash-back credit card to earn up to 2% on those fees. CNBC’s Select has a complete roundup of the best cards to refuel based on your customer’s practices.
- Drive strategically. Carpooling work and school or sports practice can dramatically reduce your time on the road. Voroch suggested that you can also find Ride shares using sites such as ZimRide, RideJoy or eRideShare.com. Also, order online and look for free delivery to cut the cost of getting groceries, takeouts and other everyday essentials.
- Sign up for Loyalty Programs. Additionally, loyalty programs with many major gas station chains can help offset the price at the pump. Some grocery chains may offer cents per gallon. For example, Kroger & Shop & Stop offers fuel points for every $ 1 spent on groceries, which can be redeemed at participating gas stations.
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