Fuel Cost Calculator

Carpool

Sharing a ride — for example, driving to work with a colleague or offering to split driving duties with other parents — is a great way to reduce spending on fuel (as well as reduce wear and tear on your vehicle). Carpooling, taking public transportation, walking, or biking just one day a week can save the typical commuter up to 1,200 miles every year, or an average of $170.¹

Choose another form of transportation

Rising gas prices are a major concern for most Americans, and the average car commuter spends $867 on fuel annually.² Additionally, the cost of vehicles themselves has risen sharply since the pandemic began. Biking, walking, and taking public transportation are often significantly less expensive than driving — as well as less stressful. Experiment with taking an alternate form of transportation to work if possible, even just one day a week, to save time and money on gas.

Check your tire pressure

Properly inflated tires can improve your gas mileage by up to 3 percent and will last longer, saving you money on maintenance.³ Check your tire pressure every month or so, using the sticker inside your driver door (or your vehicle manual) to see the proper pressure. It’s best to adjust tire pressure when your tires are cold, before you’ve driven. You can buy a digital air compressor for about $30.

Keep up on vehicle maintenance

A well-maintained engine operates more efficiently, leading to better gas mileage. Regularly change your oil and replace air filters. Using the manufacturer’s recommended grade of oil and opting for “energy conserving” oil can contribute to fuel savings. Energy-conserving oils contain additives that reduce friction, making the engine more efficient and improving gas mileage.

Road Trip

Let’s say you’re driving 500 miles round trip in your 2019 Honda Civic, which gets an average of 36 miles per gallon. Divide the total number of trip miles (500) by your car’s mpg (36) to find the number of gallons you’ll use during the trip — in this example, about 14 gallons.

Next, let’s say you’re driving in Arizona, where the average cost of a gallon of gas is $3.76. Multiply the number of gallons you’ll use by the cost of fuel, and the result is the cost for your trip: $52.64.

Commute

Follow a similar process to determine the cost of fuel for your daily commute. Let’s say you live 20 miles from work, meaning you drive 40 miles round trip every day.

Divide your daily mileage by your vehicle’s mpg. If you drive a 2019 Honda Civic which gets 36 mpg, you’ll use about 1.11 gallons of gas daily.

Finally, multiply the gas you use by the cost of fuel. If the average cost of a gallon of gas where you live is $3.76, you’ll spend around $4.16 daily on your commute. If you drive to work five days a week, fifty weeks a year, that’s $20.80 weekly, $83.20 monthly, or $1,040.00 annually.

Cost of Crude Oil

The primary factor influencing gas prices is the cost of crude oil, often accounting for over 50 percent of price. Changes in global oil supply and demand, geopolitical events, and decisions by oil-producing nations, especially those in the Organization of the Petroleum Exporting Countries (OPEC), can impact crude oil prices. For example, Russia’s invasion of Ukraine increased the cost of crude oil significantly. Government intervention also plays a role; for example, when President Joe Biden released oil from U.S. strategic reserves to lower costs.

Taxes

Federal, state, and local taxes contribute to the cost of gas. For example, one of the reasons gas is more expensive in California is that its tax on gasoline is higher than those of other states, accounting for about 13 percent of the price of a gallon of gas.

Distribution and Marketing Costs

The process of distributing and marketing gasoline involves costs related to transportation, storage, and the operation of gas stations. Distribution costs can vary based on the location and infrastructure.

Market Forces and Speculation

Like other commodities, the price of gas is influenced by market forces and speculation. Factors such as global economic conditions, supply and demand dynamics, and market speculation can contribute to price volatility.