Mellody's Math: How to Beat Expensive Gas

March 7, 2005 — -- The price of crude oil surged last Thursday to $53 a barrel -- 45 percent higher than one year ago.

Gasoline prices are expected to jump -- as much as 24 cents per gallon as early as this week. That would put the price of unleaded regular at an all-time high of $2.16 a gallon (Gas was at $2.064 a gallon in May 2004). Currently, the average price is $1.92 a gallon, according to the AAA. However, depending on where you are, gas prices are already as high as $2.24 a gallon, as in parts of California.

The high prices can be traced to high demand in China and India, turmoil in the Middle East, and cold weather here in the United States. Oil prices are up more than $10 a barrel since the start of the year, when the oil cartel, Organization of Petroleum Exporting Countries, officially cut its daily output by 1 million barrels.

As long as demand continues to outpace supply, the price of oil will continue to increase. It would not surprise me if the price of oil rose to $60 a barrel in the coming months -- especially during the summer travel season when use of air conditioning and road trips drive demand even higher.

People can do a couple of things. First and foremost, now is the time for efficiency. Getting lost at over $2 a gallon is no longer just lost time, but lost money as well. Know where you are going.

Additionally, you should: