Back in the 1990s, you could fill up your car for just $1.50 a gallon of gas. Yep, that is right.
The average price of gas in the 1990s was $1.50. Just 150 cents per gallon.
What we didn’t know then was that prices were set to rise more than 1,000% by the year 2000.
Today, the cost of gas hovers around $3 a gallon in most places. That means that back in the late ‘90s, it would have cost you about 20 times as much to fill up your tank as it does now.
Listen, we literally would not be shocked if one of your greatest memories of the 90s was the low gas prices. Okay, maybe a little - but still!
Luckily, you probably still have some old pennies stashed somewhere or maybe you grew up with an old family who had enough money to keep things running smoothly at home.
Either way, here are some tips on how much cash you’ll need to reserve for gas when prices start shooting up again.
What Happens When Gas Prices Spike?
For the month of March 2017, average gas prices have hovered around $2.36 per gallon, which is about 30% more than the national average.
While computer prices have come down since the 90s, unfortunately, gas prices have skyrocketed.
If you’re still paying less than $5 a gallon for regular gasoline, now might be a good time to keep an eye on your budget and get prepared for when prices start going up. If you’re planning on driving anywhere in the next few months, you’ll want to put aside some extra cash.
When gasoline prices spike, it usually happens immediately or within a few days after they drop a little bit. This means that if you don’t plan ahead and reserve money for gas, you could find yourself without enough money left in your wallet to fill up your car.
To avoid this situation, put aside between $50-100 dollars every two weeks or so. That way, you won’t have to worry about running out of money when making any purchases at the pump.
Finding the Historical Data on Gas Prices
There are a lot of different ways to find historical data on gasoline prices.
You can go to your local library and look at old newspapers or you could check out an old newspaper clipping from the website of your local library.
If you don’t have any old newspapers lying around, you can still dig up some information using social media.
Find a post that was published in the past year where someone asked what the price of gas was like when they were younger, and use that as your starting point. It’s important to remember that this is just a rough estimate.
If you're feeling nostalgic for the 90s and beyond, click here for the history of gas prices in the United States.
How Much is Gas Going to Be?
As of right now, the price of gas has risen to about $3 a gallon. That is a significant price hike.
That doesn’t mean that it will continue to increase at this rate, but it does mean that if you fill up your tank today, you might have to spend more than $300.
That’s not a small amount of money to spare. So what can you do if you find yourself short on cash in the near future?
Make sure you have enough money saved up so that if the price of gas increases in the next few months, you won’t be completely left with anything. Look at the average costs of gasoline, and use that as a baseline for saving.
Start saving money now for when prices go back down again.
Make a list of things that you can cut out or eliminate so that when prices drop and your budget is stretched thin, it won’t feel like there are as many financial sacrifices.
Figure Out How Much Gas You Use a Month
As with anything else, the more you know about how to estimate your needs, the better. There is no better way to know how bad the price of gasoline is going to gauge you than tracking expenses.
The best way to figure out how much gas you use is by taking an average and multiplying that by a month or two.
For example, if you fill up your car twice a week, then you will need to budget $80 for gas each month. This number can be adjusted depending on how many miles you drive per day and how often you fill up your tank.
Know the Environmentally Friendly Fuels
Electric vehicle charging stations are becoming more and more common. Sure, electric vehicle prices are a little ridiculous at the moment.
But, instead of insane gasoline prices consistently, you only have to worry about retail prices of electric cars.
Increasingly, cities are investing in them as well to make it easier for residents to use these alternative fuels. One way that you can do your part is by using these electric vehicles for transport instead of gas-powered ones.
Other Tips and Ideas on How to Save on Fuel
1. Try to find a good price for gas on your smartphone
2. Find a coupon that you can use in the store
3. Buy a car that gets better mileage on the road
4. Be able to work out when prices are most likely to go up and plan accordingly
5. Plan ahead so you know how much gas you’ll need before it shoots up again
6. If there is a hurricane or other natural disaster, gas prices will likely increase if supplies are disrupted
7. If you are traveling, watch out for oil refineries since they produce gasoline
Figure Out Where the Cheapest Gas Is
Gas prices will fluctuate over the next couple of years, but it's important to know where the cheapest gas is. If you live in an area with a high cost of living, your gas bill might be pricey during these times.
To reduce your costs and make sure you're on the lowest end of the totem pole when it comes to pricing, try checking online for discounts in your area.
You can also check out what people near you are paying for gas by looking at websites that aggregate data like Gas Buddy.
We may be in a gas crisis, but that doesn't mean you can't take proper precautions going forward to make sure the gallon of gas cost doesn't negatively impact you.