global Tax Gas Prices on the Rise…Here’s How You Can Save May 31, 2022 U.S. gas prices are at an all-time high…and are likely going to climb even higher this summer. How can you make the most of a tank of gas? We have some ideas here. As peak driving season approaches, you might be wondering how to make the most out of a tank of gas…especially in light of soaring gas prices. Some gasoline experts and analysts are predicting a national average of over $6 per gallon in August. How will this impact standard mileage rates? How can you save on gas? We answer these questions and more below. Why is gas so expensive right now? Crude oil prices have been increasing due to supply chain issues brought on by the pandemic. The war in Ukraine has also caused further supply chain disruption. Will this impact standard mileage rates? As our blog covers, starting January 1st, 2022, the standard mileage rates (for use of a car, van, pickup or panel truck) are: 58.5 cents for business miles driven, up from 56 cents in 2021 (26 cents will be treated as depreciation for 2022) 18 cents per mile driven for medical or moving purposes, up from 16 cents in 2021 14 cents per mile driven in service of charitable organizations The surge in gas prices directly impacted the increased rates for 2022. The rates are updated once a year and usually don’t change even as fuel costs fluctuate during the year. How can I reduce my fuel consumption? Looking for ways to save money and reduce fuel consumption? There are a few things you can do to make the most out of a tank of gas: Make a concerted effort to maintain a constant speed, as speeding up and slowing down frequently can severely lower your gas mileage. Cruise control can help! Stop speeding. For every 5 miles you drive over 60 miles per hour, you are reducing your fuel economy by potentially 7%. Though tempting, letting your car warm up for 10 minutes during the heart of winter can cost you $0.04 per minute ($2.80 per week of wasted gas). Consider a tune up—it can increase your mileage by 4%. Consider cleaning your car and removing extra cargo from both the vehicle and the roof rack. Extra weight can reduce your fuel economy as well. Check your tire pressure regularly Questions? Contact us.
