How Far To Drive For Cheaper Gas

Cheaper gas can sometimes be found by driving a little further into less traveled neighborhoods, off main routes, or even just a little down the road past an intersection. The gas prices may differ from as little as a penny to as much as .05-.10 cents. Two questions that pertain to this are how far should one travel to obtain cheaper gas? and when does it cease being cost effective?

Image source: 'Daniel Christensen'; GFDL, CC BY-SA 3.0

The answers are based on how much gas is being purchased, the price differential or difference in cost, and the cost of the gas. For example, if a vehicle with a ten gallon tank gets 25 miles per gallon and gas costs $3.60 at station one but $3.55 at gas station two, then a fill up of half a tank or 5 gallons will stop being cost effective after 1.736 miles have been driven. This is because the cost per mile driven is .144 cents and the savings on 5 gallons of gas is .25 cents at .05 cents differential. Since 1.736 x .144 cents is just short of .25 cents any distance further than that makes the cheaper gas not worthwhile unless more gas is needed.

Two good ways to ensure driving the extra mile to get cheaper gas is to drive until the gas tank is closer to a quarter full or 1/8th full and identifying the location of the more cost effective gas before hand. Also, driving with less gas can help lower the extra weight a vehicle must mobilize saving additional money. Websites such as Gas Buddy and Internet Auto Guide perform local searches for gas prices that can help identify where gas is cheapest. The more gallons purchased, the greater the price differential and the shorter the distance to the cheaper gas, the higher the benefits will be.

So is this worthwhile or just nickle and diming? It may not be much, but it is still savings; the average vehicle driver across all age groups drives 13,476 miles per year according to an April 2011 report from the  U.S. Department of Transportation. If a driver consistently saves .05 cents on the gallon for a vehicle which obtains 25 miles per gallon, then a savings of .002 cents per mile is obtained. This amounts to $26.95 per year based on the Department of Transportation statistics. Some retail stores such as Safeway and Costco offer discounted gas and gas rewards to shoppers lowering gas costs by roughly .03-.15 cents in comparison to other local gas stations. The higher the discount and the miles per gallon a vehicle gets, the greater the savings become.