With the ever-changing – and sometimes outrageous – price of gasoline, drivers are always looking for ways to increase fuel efficiency while controlling costs at the pump. But how many of us really know how gas prices are determined?

Before looking at the factors that determine gas prices, let’s review some statistics on fuel consumption. According to the Department of Energy (DOE), the U.S. consumed 137.80 billion gallons (or 3.28 billion barrels) of gasoline in 2008. That’s actually about 3% less than the record high of about 142.35 billion gallons (or 3.39 billion barrels) consumed in 2007. As a comparison, consumption in 1998 was about 126.52 billion gallons (or 3.01 billion barrels).

Let’s turn our attention now to factors that help determine retail gas prices. Figures listed below are from the Department of Energy (DOE).

• Crude Oil Prices. This price varies over time and among regions of the country. In March 2010, refiners paid an average of about $80 per barrel of crude oil, which accounted for about 69% of the national average retail price of a gallon of regular grade gasoline.
• Taxes. Federal, State, and local government taxes (not including county and local taxes) accounted for about 14% of the national average retail price of regular gasoline in March 2010. Federal excise taxes were 18.4 cents per gallon and State excise taxes averaged 22.01 cents per gallon.
• Distribution and Marketing. Distribution, marketing, and retail dealer costs and profits made up the next largest share of the retail price of gasoline in March 2010. These expenses accounted for roughly 8% of the retail price of regular gasoline.
• Refining. Refining costs and profits were the smallest part of the retail price of gasoline in March 2010, accounting for 9% of the retail price of regular gasoline.

Demand is another indicator of higher gasoline prices. The demand for gasoline is usually higher in the summer, since it is a peak vacation time. This higher demand generally translates to higher gas prices.

Ford’s new entry into the subcompact vehicle market is earning rave reviews for fun, function and fuel economy. What makes the all-new Fiesta so special? Find out here…

We’ve all been on the edge of our seats awaiting this number: the 2011 Chevrolet Volt extended-range electric car will get 50 mpg when in gas mode. Unlike standard electric cars, the Volt has a gasoline-powered generator that switches on when battery power is depleted. Chevy expects this car to go on sale in November or December of this year.

As the price of fuel continues to rise, we’re all looking for ways to increase our fuel mileage. Lots of theories abound about how exactly to do that, but many of them simply aren’t true. Here is the truth about some common fuel economy myths.

1. Leaving your windows down creates an aerodynamic drag that cuts your fuel efficiency.
   And closely related…
   Running the air conditioning causes fuel efficiency to plummet.

   We’ve all heard both of these warnings – so which one is true? Well, driving with your windows open does increase your car’s aerodynamic drag, but it hasn’t been found to have a measurable effect on fuel economy.

   And as for running the air conditioner? Studies conducted by Consumer Reports and Edmunds.com found that while running your vehicle’s air conditioning causes your engine to work harder, it only reduces fuel economy by about 1 mpg at highway speeds. So really, you’re not losing that much. However, if you’re just running errands around town, you may save some gas by keeping the A/C turned off and the windows rolled down.

   Experts at both Consumer Reports and Edmonds.com found that fuel mileage is roughly the same whether the windows or down or the air conditioning is on. Of course, that can vary slightly from car to car, since each make and model is different.

2. Frequently starting up and turning off your engine burns through fuel quickly.
   This myth most likely got its start in the days when cars had carburetors. However, thanks to today’s fuel-injection technology, drivers actually save gas by turning off their engine rather than letting it idle unnecessarily for long periods of time.
3. Fill your tank in the morning while fuel is cold.

   This myth most likely became popular fluids are more dense at lower temperatures. Given that bit of science, a gallon of cold gas actually has more gas molecules than a gallon of warmer gas.

   But according to Consumer Reports, the temperature of gasoline as it comes out of the nozzle varies little during the course of the day. So really there’s not really much benefit to filling up your tank early in the day.

4. Change your air filter.
   It’s important to keep up with routine vehicle maintenance, but having a dirty air filter isn’t going to hurt your fuel economy – but it will almost negligibly decrease engine power. Today’s engines have computerized sensors that automatically adjust the fuel-air mixture, so clogged air filters don’t factor into gas consumption.
5. Pump up your tires.
   There are several reasons to make sure your tires are properly inflated. If your tires are under-inflated, you may experience bad handling or even a crash, plus your tires will wear out faster. An equally important, under-inflated tires reduce will reduce your fuel efficiency.

   However, you should never over-inflate your tires. You may get slightly better fuel economy because there will be less tread touching the road, which reduces friction. But that also means less grip for braking and turning, which increases your chances for an accident.

6. Use premium fuel.
   Many drivers believe that they must fill their tanks with premium gasoline because their vehicle owner’s manual recommends it. Most newer cars do just fine with regular fuel. Why? Because newer engines have sensors that detect what kind of gasoline you’re using and adjust spark plug timing accordingly. The result is no difference in fuel economy. However, if you notice your engine knocking, go back to using premium. It doesn’t happen often, but you should be aware of the possibility.
7. Don’t waste your time shopping around for cheaper gas, since it’s not worth the extra fuel you’ll use trying to find it.
   Sometimes it does pay to shop around to find the cheapest gas prices – and you don’t have to drive around to do it. There are many resources online, such as gasbuddy.com, that let you search your area for the lowest-priced fuel.
8. 4. Keep your speed below 55 mph to get the best gas mileage.
   According to the U.S. Department of Energy (DOE), fuel efficiency doesn’t start to drop until you reach speeds higher than 60 mpg, and it’s mostly due to wind resistance and tire rolling resistance. Even then, how smoothly you drive makes a greater difference on gas mileage than your speed does. And once your car is up to speed, it really doesn’t take much energy to keep it going.
9. If you want better gas mileage, drive a car with a manual transmission.
   While that may have been true in the past, newer automatic transmissions can get the same highway mileage – or even better – as a manual transmission, especially at highway speeds. New automatic transmissions even have an ‘overdrive’ gear that reduces engine RPMs at higher speeds.

Make your commuting vehicle work for you!

When purchasing a car there are lots of things which you need to think about. The type which you choose will impact on your life in some way, so it is important to make the right decision where possible. It is not just the car you have to think about, if you are female you will have to look for car insurance for women and a man will do likewise, you need to sort out tax and even think about things like parking. Spending so much time driving to and from work doesn’t have to be stressful, with the right car it can even be enjoyable.

Let’s face it – long commutes can take a toll on both your wallet and your sanity. That’s really no surprise, since nationwide, the  average motorist spends approximately 41 minutes a day traveling to and from work – unless you live in Southern California, where you’re more likely to spend about 60 minutes a day commuting. So it stands to reason that the automobile you make that commute in can play a big part in your well-being, and the American Automobile Association (AAA) agrees. In fact, the AAA recently evaluated hundreds of vehicles on practicality, safety, comfort, fuel efficiency and affordability to find out which vehicles are the best for commuting. Here’s are their top picks:

Honda Insight: Great fuel economy. Reasonable comfort for the driver and front-seat passenger. And according to the AAA, it’s also less expensive and more fun to drive than some of its hybrid competitors.

Ford Fusion: A winning combination of power, comfort and handling in the four-cylinder models. This hybrid offers great gas mileage, but the price tag is a little higher than those on similar vehicles.

Volkswagen Jetta TDI: The AAA says this diesel is as economical as hybrids and fun to drive, as well.

Hyundai Elantra: Room for a driver plus three passengers, great gas mileage and a 10-year/100,000 mile warranty add up to a smart choice for high-mile commuting.

Subaru Legacy/Outback: These new four-cylinder models perform well and offer decent rear seat legroom.

Honda Civic: Affordable, dependable, economical and comfortable – that’s why the AAA calls this vehicle one of the better performing compacts for commuting.

Chevrolet Malibu: Nice styling and enough power for the daily commutes, combined with decent fuel economy. Add to that a spacious interior, and this four-cylinder vehicle is ideal for carpooling.

Honda Accord: When equipped with a four-cylinder engine, this vehicle is a roomy, solid and economical choice for both carpooling and family transportation.

Mazda3: According to the AAA, this compact features above-average power and crisp handling, plus good fuel economy.

Interested in a little more luxury and style?  Read here to find out which vehicles made the cut.

They’re cool. They’re great for hauling stuff. They’re perfect for hauling kids. Plus, they make you feel kind of tall and invincible. But can they do all that and still be fuel efficient?  Take a look for yourself.  Here are the 20 most fuel efficient 2010 SUVs:

* Based on 45% highway driving, 55% city driving, 15,000 annual miles and the price of fuel used by the vehicle.

** Source: The gas mileage figures and fuel cost estimates found on this website are reported by the U.S. Government at http://www.fueleconomy.gov/

New gas mileage requirements help you save at the pump

The Obama administration is mandating tough new gas mileage standards on vehicles for model years 2012 – 2016 – much tougher than ever before. So how do the new Corporate Average Fuel Economy (CAFÉ) requirements help us as a nation? Here are 5 reasons to love ‘em:

1. More money in your pocket.
   Beginning with 2012 model year automobiles, automakers must improve fuel economy by about 5% per year, each year through 2016. That means you’ll get more mileage out of every tank of gas and more for your money.
2. Fewer trips to the gas station.
   Since you’ll be able to go farther on a tank of gasoline, you won’t have to find time to stop at the gas station as often. That translates to time for a coffee run.
3. Cleaner environment.
   According to the EPA and the Transportation Department, the new standards would reduce CO2 emissions by about 960 million metric tons over the lifetime of the regulated vehicles. That’s like taking 177 million cars and light trucks off the road in 2030.
4. Less dependence on foreign oil.
   The Department of Transportation (DOT) estimates that the new requirements will save 1.8 billion barrels of oil over the life of the program. According to the U.S. Energy Information Administration, that’s twice the amount of oil imported from the Persian Gulf in 2008. President Obama adds that it’s the equivalent of taking 58 million cars off the road for a whole year. 
5. Better technology, more choice.
   In order to meet these new requirements, automakers will need to improve upon or develop new technology. And since all automakers face the same guidelines, consumers will benefit by having more options when it comes to purchasing a new fuel-efficient vehicle.

Small cars seem to corner the market on great gas mileage. But what if a small car just doesn’t fit your needs? Don’t despair – there are plenty of family sedans that are returning great gas mileage as well as comfort for your family. In fact, here are the top 25 family sedans for 2010. And remember…if you have experience with any of these models, we’d love to hear about it. Just leave a comment!

* Based on 45% highway driving, 55% city driving, 15,000 annual miles and the price of fuel used by the vehicle.

** Source: The gas mileage figures and fuel cost estimates found on this website are reported by the U.S. Government at http://www.fueleconomy.gov/

Want great gas mileage? Go small. Go 2010. This year’s small cars are delivering great mileage. Here are the top 2010 model small cars!

Do you have experience with any of these cars? Please post a comment and share your thoughts!

* Based on 45% highway driving, 55% city driving, 15,000 annual miles and the price of fuel used by the vehicle.

** Source: The gas mileage figures and fuel cost estimates found on this website are reported by the

U.S. Government at http://www.fueleconomy.gov/.

Ford is reportedly investing $155 million  – plus adding 60 jobs – at its Cleveland plant to build a new fuel-efficient engine for the 2011 Mustang.  According to the EPA, Ford’s car and truck fuel economy has improved nearly 20 percent since 2004.