'Gas Spotters' Seek Out Rare Savings at the Pump

Nov. 8, 2007 — -- "Gas spotters" Adam Kessler and Michael Gorgia are on the hunt to find cheap gas. With crude oil nearing $100 a barrel that is no easy task. But these volunteer spotters are leaving no pump unturned, scouring stations from New York to Los Angeles to find a good deal.

They post their findings daily, along with thousands of other gas spotters, on a Web site called gasbuddy.com. The Web site provides users information on where the highest and lowest prices are -- almost minute by minute.

However, this isn't a scientific study. The gas spotters don't know the price at every pump, but as volunteers they are unquestionably diligent.

"I take pretty much the same route every single day on the way to work and I pass anywhere between 10 to 13 gas stations," Kessler said. "I just mentally memorize where the gas price is and then when I get to my computer in my office, I upload all the prices for other people to benefit from."

Gasbuddy.com co-founders Jason Toews and Dustin Coupal created the Web site seven years ago to help people save money. According to Toews, gas prices can vary by 20, 30 or even 40 cents a gallon in one metropolitan area alone. And all of that change can add up.

Gorgia agrees, saying he's saved a significant amount of cash by shopping around town.

"I can save about $500 per year. I'm saving 30 cents a gallon just by knowing what gas stations to go to," Gorgia said.

So where is the cheapest gas? Averaging at $2.82 a gallon, gasbuddy.com says it's in New Jersey. Missouri isn't far behind at $2.91 a gallon. California's gas is the most expensive -- a whopping $3.36 a gallon, on average.

For those who don't have the luxury of filling up in New Jersey, gasbuddy.com has other tips on how to find a bargain. According to the Web site, gas prices, not surprisingly, tend to be higher in rich neighborhoods. They are also higher at stations directly around the interstate. The Web site advises to drive a little off the freeway, and to look in the suburbs for cheaper gas.

What day of the week you pump might also affect your pocket. According to price spotters in Ohio and Minnesota, gas prices in Minneapolis and Toledo are likely to go up on a Thursday right before the weekend.

While this pump price circus may leave some people furious at gas station owners, Toews said they are not to blame.

"Gas station owners aren't really making that much money off of gasoline right now," Toews said. "Consumers are so price sensitive, people will drive around looking for a little bit of a bargain. They will drive an extra five miles just to save 10 cents a gallon."

While gas station owners are not reaping the reward of high prices, analysts believe big oil companies are. According to the Energy Information Administration, approximately 64 percent of the price of gas is crude oil, the primary raw material from which gasoline is made. Federal, state and local taxes account for another 14 percent, refining for 13 percent, and distribution and marketing accounts for 9 percent.

While gasbuddy.com makes it easier to find the best deal at the pump it can't lower the prices. At this rate, we may all be riding our bikes very soon.