Remember when choosing a theme park was the biggest consideration for planning a summer road trip? Those were the days.
Forecasts for 2012 gas prices range from the painful-but-not-unexpected $3.80 per gallon (from the U.S. Department of Energy) to the cringe-inducing $5 per gallon (from former Shell president John Hofmeister).
There’s little doubt that gas prices will still be a big consideration in most household budgets in 2012, and alternate transportation isn’t always an option, so we all want to do what we can to cut spending on gas.
Here are five ways you can save money on gas:
1. Gas company-specific credit cards
2. Gas company-branded major credit cards
3. Rewards cards with special rewards for gas purchases
4. Regular rewards cards with cash back features.
5. Supermarket programs that give you gas credits with purchases.
An example of a gas company specific card is the Shell Drive for Five Card. It isn’t a standard credit card, because you only use it at Shell stations, but you can use it for car washes, repairs, and food and drinks at Shell stations. You save 5 cents a gallon on Shell gasoline and diesel if you purchase at least 45 gallons per month, for up to 100 gallons per month.
Co-branded credit cards from gas companies offer similar rewards at gas stations affiliated with the card. For example, the Exxon Mobil MasterCard gives you a 15 cent-per-gallon rebate on fuel purchases at Exxon and Mobil stations, plus 2% rebates on the first $10,000 you spend on eligible purchases each year, and 1% rebates after that.
One rewards cards specializing in fuel purchases is the TrueEarnings Card from Costco, which gets you 3% cash back on your first $3,000 of gas purchases each year, and 1% cash back after that. There’s no annual fee, but you have to buy a Costco membership to get one.
Sometimes you can do quite well with a regular cash back rewards card like the Chase Freedom Card. With this card, you earn up to 5% cash back, with categories of spending that rotate quarterly. In 2011, the 5% categories for July through September are gas, hotels, and airlines, so if this corresponds with your travel plans, you could benefit nicely.
Supermarkets like Kroger offer rewards points with purchases that can add up to a discount of 10 cents per gallon at Kroger fuel centers. Programs differ, but generally once you accumulate enough points you are eligible for the discount once a month. And, just by having a Kroger discount card you get 3 cents off per gallon
Before choosing one of these cards, consider your level of brand loyalty. If you’re partial to one fuel brand, check out that gas company’s offerings first. And remember, if you carry a balance on your credit card, interest will quickly dwarf your cash back rewards, so look for a card with a long introductory 0% interest rate on purchases.
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