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For those embarking on summer travels, there is promising news: Gas prices have significantly dropped compared to last year.
“What a difference a year makes,” expressed Andrew Gross, a representative for AAA, the renowned motoring and leisure travel membership organization.
As of Friday, the national average for a gallon of gasoline stands at $3.58, a notable decrease from $5 a year ago, according to AAA.
The skyrocketing prices experienced last year garnered much attention and led politicians at both state and federal levels to propose gas tax holidays.
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This year, those concerns have subsided. Barring any surprises during hurricane season, gas prices are expected to remain relatively stable, as stated by Gross.
“At present, we do not foresee any factors that will drive prices upward or downward,” Gross stated.
He predicts the national average will likely hover around $3.50 per gallon.
This is positive news for travelers, who have observed price increases in other areas such as airfares and hotels this year, according to Ted Rossman, senior industry analyst at Bankrate and CreditCards.com.
A recent survey by Bankrate found that 63% of adults plan to take a summer vacation this year, a slight increase from 61% last year.
“People desire to go somewhere, do something,” Rossman stated. “There is still considerable pent-up demand as a result of the pandemic.”
However, rising costs also prompt individuals to seek ways to save, according to Rossman.
Bankrate’s survey revealed that 80% of travelers plan to adjust their plans due to inflation.
One of the more common adjustments made is opting to drive instead of fly, Rossman explained. Travelers are also looking to save by choosing cheaper accommodations or destinations, or by shortening their trips.
Even though gas prices are not as high this summer, there are still several ways to increase your savings if you or your family plan to embark on a road trip.
1. Utilize a gas rewards credit card
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According to Rossman, certain credit cards offer up to 5% cash back on gas. Examples include Chase Freedom Flex and Discover it Cash Back, which provide this rate from July to September.
Sam’s Club also offers specific cards that allow consumers to earn money back on gas purchases.
It is also worthwhile to explore the benefits provided by your existing credit cards, Rossman advised.
“You may already possess a great gas rewards credit card without even realizing it,” Rossman added.
It is generally advisable to avoid gas-branded cards, which often come with high annual interest rates of 30% and limited gas purchase discounts, he cautioned.
2. Take advantage of discounts
In addition to utilizing a credit card with excellent gas rewards, drivers can save by using apps like Upside or GasBuddy to find better gas prices.
Drivers should also look for opportunities to stack offers. For instance, a credit card may offer 5% cash back on gas, while a gas station app provides a 10% discount per gallon.
“This allows you to save in multiple ways,” Rossman explained.
3. Review your car rental coverage
Rental cars are comparably more affordable this year, Rossman mentioned.
If you are considering renting a car, double-check whether your credit card already provides insurance coverage.
“Credit cards often include various travel perks that people may be unaware of,” Rossman noted, which may encompass provisions for trip delays, cancellations, as well as lost or delayed luggage.
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