Gas prices surge to $5 per gallon, reaching all-time high: AAA
Gas prices surged to a new all-time high in June, according to AAA. (iStock)
Gas prices reached an all-time high in June, surpassing $5 per gallon for the first time since AAA began tracking prices in 2000.
The cost of a barrel of oil hit more than $120 in June, nearly double the price from August last year, according to AAA. This came as oil demand continued to outpace the tight global supply.
And as the summer driving season has ramped up, gasoline in the U.S. has become more in demand. Jumping 58 cents from May, the national average gas price in June increased to $5.01, an all-time high.
"Based on the demand we’re seeing, it seems high prices have not really deterred drivers," AAA spokesperson Andrew Gross said. "If prices stay at or above $5, we may see people start to change their daily driving habits or lifestyle, but it hasn’t happened yet."
If you are looking to lower your auto expenses amid rising gas prices, you can take steps to reduce your auto insurance payments. Using a marketplace like Credible lets you compare multiple providers and find your personalized rate in minutes without affecting your credit score.
CONSUMERS ACCEPT TELEMATICS OPTION TO LOWER AUTO INSURANCE PREMIUMS: TRANSUNION
Demand for gas remains high
Despite rising prices, the demand for gas has continued to grow, according to AAA. It's reached 9.2 million barrels per day, as drivers head into the summer months.
"This dynamic between decreased supply and increased demand is contributing to rising prices at the pump," AAA stated. "Coupled with increasing crude oil prices, this means that the price of gas will likely remain elevated for the near future."
But as gas prices surge, one company is doing what it can to lower the cost of another product — donuts. National donut chain, Krispy Kreme, announced that every Wednesday through the summer, it would lower the cost of a dozen glazed donuts to equal the national average price for a gallon of gas which AAA reports each Monday. The typical cost for a dozen glazed donuts is about $12.
If you are struggling with rising gas prices and are looking to save money, you could consider lowering your auto insurance premium. Visit Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.
NEW VEHICLE PRICES DROP FOR THIRD STRAIGHT MONTH, BUT DRIVERS STILL PAYING OVER STICKER PRICE: DATA
How to save on your auto costs
As the cost of driving continues to rise, there are several steps drivers can take to help reduce their auto expenses. Here are a few:
Buy a used car
Drivers can save money by buying a used car, rather than a new one — and not just on the initial cost of the vehicle. They could also potentially save on the price of insurance. Nationally, auto insurance premiums decrease by about 3% for each year the vehicle ages, according to a study.
Improve your driving history
A clean driving record with no tickets or at-fault accidents will help drivers get better average car insurance rates. While violations will fall off a driver's record after a certain period of time, they can also take proactive steps to help clear it, such as by taking a driver's safety course.
Shop for discounts
Different insurance companies will offer discounts for various reasons. For example, teen drivers can get a discount for having good grades. Other companies also offer better rates if you combine your auto policy with another insurance type, such as homeowners insurance.
If you’re shopping for new car insurance, you can visit Credible to compare quotes from multiple companies at once and find the best deal for you.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.