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How QE2 Affects Gas Prices and What to Do to Save

Since November 2008, the Federal Reserve has attempted to save the United States economy by instituting quantitative easing measures. Printing out $2.3 trillion has helped them keep the economy afloat, but it has had a number of consequences. The Federal Reserve’s printing press is driving inflation through the roof.

In case you haven’t noticed, gas prices are a victim of the quantitative easing model. As of May 16, 2010, gas was priced at about $2.90 a gallon. Today, it is selling for about $3.90 a gallon. That reflects a 34% increase over the past year. The price has actually increased more than 71% over the past two years.

I’m afraid we don’t have much control over the price of gas anymore.

Floods, turmoil in the Middle East and oil speculators have all been blamed for the increasing price of gas. However, the Federal Reserve has played the biggest role in rising gas prices. Even though there isn’t much you can do to lower gas prices, you can at least save money in a few different ways.

Solutions for using less gas

First of all, try to drive smoothly and maintain a consistent speed. Keep your feet off the brakes as much as possible. You use much more gas when you accelerate or decelerate.

Try to reduce your speed by removing your foot from the gas and brake lightly. This is much more efficient than slamming the pedal.

If you are in the habit of hitting your brakes, the best way to correct it is to remind yourself that your available gas can go up by twenty percent if you change habits.

You will also save money by driving at lower speeds.

You can also learn to tolerate heat and cold a little bit more. Instead of relying exclusively on your air conditioner, you can try rolling the windows down slightly if you are driving under 35 mph. Also, turn off your air conditioner before you finish your trip. If you turn off the air conditioner a few minutes prior to your arrival, the car should still be cool by the time you are done.

When you finish, try to park in the shade.

This will keep the car cool so that you don’t need to blast the air conditioner during the next leg of the trip.

It is also important to make sure your car is well maintained. Some things you need to try to take care of include:

1. Travel with lower loads. This not only increases fuel efficiency, but also places less stress on your vehicle.

2. Make sure you don’t have as much wind resistance on the surface. Anything attached to the roof or rear of the vehicle will increase drag which wastes fuel. So does leaving the bed up on your pickup.

3. Keep the tires in good shape. They should be inflated properly and checked for wear so that they can operate smoothly and more efficiently.

4. Finally, accept that you may have to spend less time driving. If you can take turns sharing rides to work and take care of all your errands at the same time, then you will be able to save a lot of gas.

Thanks to QE2 and other economic problems our country is facing, the years of spending $2.38 for a gallon of gas are probably behind us forever.

We have to accept that we need to make major changes to our driving habits.

Many people I know are spending $80 every couple of weeks at the gas station. Start changing your driving habits and maybe you won’t have to max out your credit card trying to keep your tank full.

About the Author -

Kalen Smith writes about insurance, finance and similar topics for the Renters Insurance Blog. This blog offers tips for helping renters reduce their insurance premiums.

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