How to save money on gas when prices go up

Gas prices jump around a lot. One month you’re filling up without thinking about it; the next, every stop at the pump feels like a mini budget crisis.

You can’t control the price on the sign. But you can control how much those swings hit your wallet — by adjusting how you drive, how you budget and, in some cases, how much you pay for your car itself.

As of early December 2025, the national average for regular gas is hovering around $3.00 a gallon, according to AAA, but prices vary widely by state and can change quickly. Whatever gas costs when you’re reading this, the strategies below still work.

Short answer: What to do when gas prices increase

If gas prices are eating into your budget, focus on four levers:

1. Use less fuel with small driving and trip-planning tweaks.
2. Pay less per gallon by using rewards programs and price tools.
3. Protect your budget with a dedicated gas line item.
4. Free up cash elsewhere in your car budget, often by refinancing your auto loan, so higher gas costs are easier to absorb.

Key takeaways

• Gas prices mostly reflect global crude oil costs, plus refining, distribution/marketing and taxes. Crude oil is typically the single biggest piece.
• Driving smoother, staying closer to the speed limit and combining trips can meaningfully improve fuel economy, especially at highway speeds.
• Loyalty programs, warehouse-club gas and gas rewards credit cards can shave a bit off each fill-up — if you avoid carrying a balance.
• If your monthly car payment feels tight, refinancing your auto loan may lower that bill and create room for higher gas costs. Join other Caribou customers saving an average of $159/month on their car payments.*
• Long term, choosing a more fuel-efficient vehicle — including hybrids or EVs — can reduce your exposure to gas price spikes.

Why do gas prices go up?

Gas prices start with crude oil.

According to the U.S. Energy Information Administration, the retail price you see at the pump mainly reflects four things:

• The cost of crude oil.
• Refining costs and profits.
• Distribution and marketing.
• Federal, state and local taxes.

Crude oil is usually the biggest driver. When global oil prices rise — because of supply cuts, geopolitical tension or changes in demand — gas prices tend to follow.

Local factors matter, too.

Even when national averages are steady, you’ll see different prices from state to state and station to station. That’s thanks to differences in:

• State and local fuel taxes.
• Environmental and fuel-blend rules.
• Refinery and pipeline capacity in your region.

Prices are seasonal.

Gas is often cheaper in late fall and winter, when demand is lower and refiners switch to less expensive winter blends. It tends to rise in the spring and summer driving season.

You can’t make any of that stop. But you can plan for it.

Step 1: Map out your gas spending

Before changing anything, figure out what higher gas prices are really doing to your budget.

Look at what you’re actually spending

• Pull the last 2–3 months of bank and credit card statements.
• Filter or search for gas station transactions.
• Add them up, then divide by the number of months. That’s your current monthly gas spend.

If you know prices are up, you can roughly estimate the new impact. For example, if you typically bought 60 gallons a month at $3.00 and prices jump to $3.50, that’s about $30 more per month.

Build a simple gas line item

Give gas its own line in your budget instead of burying it under “transportation” or “miscellaneous.” A basic setup:

1. Estimate monthly miles. Commute + errands + regular trips.
2. Divide by your car’s miles per gallon (MPG) to estimate gallons used.
3. Multiply gallons by a realistic price range (for example, today’s price plus 25–50 cents to give yourself cushion).

Revisit that number every few months, or sooner if prices move sharply.

Know your flexibility

Once you see the monthly number, decide where you can adjust:

• Can you trim other discretionary categories (like subscriptions or dining out)?
• Do you need to free up more cash from your car payment instead? (We’ll come back to that.)

Step 2: Use less gas with small driving tweaks

You don’t have to become a hypermiling expert to cut fuel use. A few changes to how you drive can add up quickly.

Drive smoother, and a bit slower

The Department of Energy says aggressive driving (speeding, rapid acceleration, hard braking) can lower your gas mileage by 10%–40%, depending on conditions.

Also, fuel economy tends to drop off fast above about 50 mph. One DOE estimate: Every extra 5 mph over 50 can feel like paying roughly $0.20–$0.25 more per gallon.

Practical translation:

• Use cruise control on open highways when it’s safe.
• Ease into starts instead of flooring it at green lights.
• Leave more following distance so you’re not constantly braking and re-accelerating.

Plan and combine trips

Cold starts are fuel hogs. Several short trips from a cold engine can use about twice as much fuel as a single trip covering the same distance with a warm engine.

Try to:

• Combine errands into one loop instead of separate out-and-back trips.
• Chain trips together. For example, school drop-off → grocery store → gas fill-up → home.
• Use a navigation app to map the most efficient route before you leave.

Lighten the load and reduce drag

Extra weight and wind resistance both force your engine to work harder.

Keep your tires properly inflated according to the sticker inside your driver’s door; under-inflated tires waste energy and wear out faster.

• Remove heavy items you don’t need from the trunk or cargo area.
• Take off roof boxes and bike racks when you’re not using them; DOE estimates roof-top cargo can cut fuel economy by up to 8% in city driving and as much as 25% at highway speeds.
• Keep your tires properly inflated according to the sticker inside your driver’s door; under-inflated tires waste energy and wear out faster.

Step 3: Pay less per gallon

Even if your fuel use stays the same, you may be able to shave cents or more off every gallon.

Use tools to find cheaper gas nearby

Gas prices can vary a lot even within a few miles. Price tools and apps let you compare before you pull in:

• AAA Fuel Price Finder can help you see average prices and search for cheaper stations in your area.
• Third-party apps and websites like GasBuddy can show you real-time prices reported by other drivers.

A 10- to 20-cent difference might not sound like much, but if you buy 60–80 gallons a month, that’s $6–$16 in savings just for picking a cheaper pump.

Stack rewards, memberships and loyalty discounts

Many gas stations and grocery chains offer extra savings if you join their loyalty programs or link your card.

• Warehouse clubs like Costco often sell gas at a discount compared with nearby stations, usually a few cents per gallon less.
• Grocery store programs (such as King Soopers or other regional chains) may let you earn fuel points on grocery spending and redeem them for fuel discounts.
• Station-specific apps and rewards programs sometimes include rotating per-gallon discounts or extra points for buying in-store items.

Always factor in the membership fee. If you’re only joining for gas savings, make sure the math works.

Consider a gas rewards credit card, carefully

Some credit cards offer extra cash back on gas purchases. That can be a nice stacking bonus if you:

• Pay your bill in full every month.
• Avoid overspending just to “earn” rewards.

Interest charges wipe out any gas savings quickly, so treat rewards as a perk, not a reason to carry a balance.

Step 4: Free up room in your car budget

Sometimes the issue is that your overall car costs are already tight, and higher pump prices push you over the edge.

Zoom out to your full car cost

Add up your monthly car-related spending:

• Auto loan or lease payment.
• Gas.
• Insurance.
• Parking, tolls or transit connections.
• Routine maintenance and repairs (use an average if these are irregular).

If gas is rising but the rest is fixed, freeing up room in your loan payment can be one of the most impactful levers.

How refinancing can help with higher gas prices

When you refinance an auto loan, you replace your current loan with a new one — ideally at a lower interest rate, a different term or both. That can lead to a lower monthly payment, which you can redirect toward higher gas costs.

Refinancing might make sense if:

• Your credit score has improved since you got your original loan.
• You financed at a high rate at the dealership and haven’t shopped around since.
• You’re struggling with your monthly payment and need breathing room.

Keep in mind: Extending your term can lower your monthly payment but may increase the total interest you pay over the life of the loan. Run the numbers with a refinance calculator and compare the total cost, not just the monthly bill.

Step 5: Consider a more efficient or alternative-fuel vehicle

If you put a lot of miles on your car every year, fuel economy becomes an even bigger factor. Long term, changing what you drive can matter more than how you drive.

Look at fuel economy when you shop

The Department of Energy’s fuel economy resources let you compare estimated MPG and fuel costs across models and body types, compact cars, SUVs, trucks and more.

Even within the same class, newer or more efficient models can save you hundreds of dollars a year at the pump. Check how much you could save by refinancing your vehicle based on fuel type.

Explore hybrids and EVs

Hybrids and plug-in electric vehicles (EVs) can significantly reduce or eliminate gasoline use. As of 2023, cumulative U.S. plug-in EV sales reached about 4.7 million, and adoption has been growing year over year.

When you compare options, look at total cost of ownership — including:

• Purchase price or monthly payment.
• Fuel or electricity costs.
• Maintenance and repairs.
• Home charging or installation costs (if applicable).
• Any federal or state incentives you qualify for.

Alternative fuels beyond gasoline

For certain drivers and fleets, natural gas, propane or other alternative fuels can be an option. DOE’s Alternative Fuels Data Center notes that natural gas powers more than 175,000 vehicles in the U.S. and roughly 23 million vehicles worldwide.

These fuels won’t make sense for everyone, but if you drive high mileage in areas with good fueling infrastructure, they’re worth a look.

FAQs: Saving money at the pump

• Why do gas prices increase?
  Gas prices mostly move with the price of crude oil — the main ingredient in gasoline — plus refining, distribution and taxes. Global events, refinery outages, seasonal demand shifts and regional policies can all affect those components, which is why prices can vary so much over time and from state to state.
  
• What are the best ways to use less gas?
  In the short term, the fastest wins usually come from driving a bit slower, avoiding hard acceleration and braking, and combining trips so you make fewer cold starts. Then layer on tools to find lower-priced stations and loyalty programs or rewards cards that give you discounts or cash back at the pump.
  
• Should I change cars or refinance my loan when gas prices rise?
  Switching to a more fuel-efficient vehicle can reduce your long-term fuel costs, but it comes with a new payment, taxes and fees. Refinancing your existing loan can be a quicker way to lower your monthly car costs without changing vehicles. The right move depends on how much you drive, what rates you can qualify for and how long you plan to keep your current car.
  
• How do I build a gas budget?
  Start by pulling 2–3 months of actual gas spending and taking the average. Then estimate your future fuel use based on your mileage and car’s MPG, multiplying by a realistic price range that includes some cushion. Put that number into your monthly budget as a dedicated “gas” line and adjust quarterly or anytime prices change significantly.

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