Friday, April 21, 2006

How to fight the high price of gasoline

I've been wondering what's the best way to offset or even benefit from the high price of gasoline. Here are some quick thoughts:

a. Pay for gasoline used for business through your company. As long as it's for a business use it becomes 100% expensible. This saves me 41.25% per gallon. It may be the best hedge possible.

b. Use a gasoline rebate card to save 5%.

c. Buy gasoline at Costco - it's usually the cheapest in the area by $0.20 per gallon. That can add up to a 7% savings at $3 / gallon

d. Invest in stocks that will profit from the booming cost in oil. Now it's more than likely that the market has already factored rising commodity prices into oil company prices so there may not be bargains there, just growth. But what about companies serving fast growing asian markets or what about servicing and exploration companies? Invest in them and maybe your money will rise with the cost of oil.

e. Consider alternate energy investments. GE is one of the leading makers of environmentally efficient large scale generator turbines. They're also making a big push into wind generation. You might find other wind generation companies out there.

f. Use a gasoline pricing website to find where it's cheapest. MSN has this feature on their website, so does Gas Buddy. AAa has their comparitor, too.There are quite a few Gas comparison websites out there. You'll want to experiment to find the best.

g. I've often wondered if you can prepay to buy gas cheaper (kind of like gift card) or if fleet cards give discounts - anyone have any ideas?

h. what is AAA doing to help us? I've just sent AAA an e-mail asking them about bulk purchasing, buying cooperatives, etc....

i. improve driving patterns - group your shopping trips and driving together to minimize unnecessary driving.

j. carpool - save 1/2 or 1/3 the cost by sharing it.

k. maintenance -change your oil, air filter, etc... as warranted by your car's manufacturer. These can help add fuel economy.

Any additional thoughts would be welcomed.

Does anyone know or remember what people were doing in the 70s during the oil shock?

Have a wonderful Friday,

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