With the cost of fuel around the world rising at an ever increasing rate, many people are looking at alternative travel arrangements in an attempt to reduce costs. But why is the cost of fuel rising at such an alarming rate?
Let’s first take a look at how the price of gasoline is constituted in the US;
- 13% Tax
- 8% Marketing and Distribution
- 14% Refining
- 65% Crude Oil
As you can see the bulk of the costs emanate from the production of crude oil with just 13% taxation. This is in comparison to the UK for example;
- 60% Taxation
- 6% Marketing and Distribution
- 11% Refining
- 23% Crude Oil
Ever increasing tensions around a large proportion of the world’s oil providing countries (Saudi Arabia, Russia, Norway, Iran, Venezuela, United Arab Emirates, Kuwait, Nigeria, Mexico and Algeria) help to spur concerns over demand. This is a result of oil markets concern that production will suffer as a result of the ability of oil producing nations to fulfill demand – simple supply and demand in essence.
How can I save Money on Traveling Expenses?
There are a number of areas you can focus on to save fuel costs each with its own benefits and drawbacks;
1. Buy a motorcycle
Pro’s – Motorcycles are cheap to buy and have staggering fuel economy compared to standard SUV’s with a typical smaller motorbike being able to travel around 100-130mpg.
Con’s – You are limited in what (and who) you can transport. Bad weather can restrict your ability to use safely. Safety – many drivers aren’t used to looking out for motorcycle riders.
2. Make use of public transport
Pro’s – Public transport can be very economical if you make use of monthly/yearly bus subscriptions. They can also be a stress free method of transport given someone else is doing the driving!
Con’s – Can be limited in destinations, may not deliver you to the desired location and can also extend journey times considerably.
3. Buy a pushbike
Pro’s – There is a lot to be said for pedal power including the obvious health benefits and zero running costs.
Con’s – Takes some effort to get to your destination via your own steam. You are subjected to the elements and therefore can be tricky when there is bad weather. Unable to transport anything significant, other than yourself.
4. Hybrid/Electric Cars
Pro’s – Great fuel economy and good for the environment in terms of vehicle emissions.
Con’s – Expensive to buy and limited in range (full electric). Hybrid vehicles (combination of fuel and battery) are also very expensive to maintain and service.
We have all been subjected to increased fuel prices to such an extent that people are turning to alternative methods of getting around. Each person and family will need to address their particular needs and see what options could be used for them.
Have I taken action to reduce my fuel Gasoline dependence?
I personally have reduced our car consumption from 2 cars to 1, and have invested in a small motorcycle for the trip to work. This small investment will save our family considerable amounts over the next five years. We continue to retain one car to ensure we can transport the family around and also to accommodate moving bulky items should the need arise. It seems to be that fuel prices are only going to increase; therefore, the sooner you take action to reduce your reliance upon gasoline the sooner you can start making some significant savings.