Gasoline prices are near four-year highs, with the national average around $4.55 a gallon — bad timing as millions of Americans hit the road for a busy travel weekend. AAA expects a record number of holiday travelers despite costly gasoline, diesel and jet fuel. Prices spiked after the conflict in Iran began and show little sign of easing, putting pressure on household budgets and political leaders.
In California, where pump prices are highest, the state and oil companies have traded public barbs. Officials have urged drivers to use unbranded stations as a cheaper option, while some refiners and retailers point to state policy for higher costs. Regardless of the blame game, most Americans so far are still driving: driving analytics from Arity show people are logging more miles, not fewer.
What can drivers actually do to cut fuel spending? Experts recommend several practical approaches.
Drive smarter
– Smooth acceleration and gentle braking are among the easiest ways to improve fuel economy. Rapid starts and stops waste gas.
– Slowing down on highways helps: higher speeds dramatically increase aerodynamic drag and fuel use.
– Keep tires properly inflated, remove unnecessary weight (heavy items in the cabin or trunk) and take off unused roof racks or cargo boxes. These small changes add up.
– Many modern cars recommend premium fuel but don’t require it. Unless your vehicle’s manufacturer explicitly says premium is required, using regular gas typically won’t harm your engine and can save money.
Consider switching to electric
– High pump prices are prompting more drivers to consider battery-electric vehicles (EVs), though interest doesn’t always translate into immediate sales. A federal EV tax credit ended abruptly last year, which depressed new-EV purchases, and month-to-month sales figures can be influenced by seasonal factors like tax refund season.
– Used-EV demand has shown mixed signals: some marketplaces report rising interest and stronger used-EV prices, while others see little change. Shopping behavior often precedes purchases; browsing spikes before actual transactions.
How much could you save?
– Savings from an EV vary with how much you drive and where you live. Advocacy groups estimate an average U.S. driver doing about 15,000 miles annually could save roughly $1,800 per year by switching to an EV. A high-mileage driver (around 25,000 miles) could save about $3,000 annually.
– Regional differences matter: electricity and gasoline prices vary across states. In some places, charging an EV is the equivalent of paying well under $1 per gallon, while in high-cost regions it might be closer to $2.70 per gallon in comparable cost.
– A quick back-of-the-envelope comparison: multiply your home electricity cost per kilowatt-hour by about 10 to get a rough dollars-per-gallon equivalent. With a U.S. average near $0.17/kWh, that approximates $1.70 per gallon.
Beyond fuel costs
– EVs often cost less to maintain because they have fewer moving parts; typical needs are tires and some wear-and-tear items, but not oil changes or complex transmissions. However, insurance for EVs can be more expensive, and battery replacement is a long-term consideration.
– Charging logistics are important. Home charging is usually far cheaper and more convenient than public fast chargers. If you can’t plug in at home, or if your driving needs demand faster charging, installing a dedicated charger adds upfront cost. The EPA and other government sites offer calculators to help decide whether a home charger is needed.
Skip driving altogether when possible
– Public transit, biking and micromobility can be cost-effective alternatives, but ridership hasn’t surged simply because gas ticks up for a few weeks. People tend to make longer-lasting transportation changes only if fuel prices remain high for an extended period.
– E-bikes and scooters can replace short car trips. Riders who work from home or live near shops often find two wheels are reliable and much cheaper. Average shared micromobility trips are under two miles, showing their fit for short errands.
Tradeoffs and lifestyle choices
– Not every driver is a candidate for an EV or transit. Long-distance commuters, rural drivers, and people without home charging remain dependent on gasoline or diesel. For some, the choice is to absorb higher fuel costs while cutting spending elsewhere.
– One family sold their house and moved into a large RV, accepting a much higher fuel budget and offsetting costs by cutting discretionary spending like paid attractions. Others may choose smaller changes: seeking lower-price stations, combining trips, carpooling or trimming nonessential expenses.
Bottom line
– There’s no single solution that fits everyone. The cheapest immediate steps are driving more efficiently and maintaining your vehicle. For longer-term savings, an EV can make sense if your mileage and charging situation align. If neither is practical, reducing driving frequency, using transit or switching to bikes and scooters for short trips can meaningfully lower fuel expenses. Consider your driving patterns, local energy prices and the upfront costs of any change before deciding which path saves you the most.