12 ways to find cheaper gas

By Liz Pulliam Weston

When gasoline was relatively cheap, few people bothered to seek out the best deals. Who wanted to run all over town or take a chance on a no-name station just to save a few bucks?

Now, average prices are heading toward $4 per gallon -- they're already there in California -- with no relief predicted until winter. The reality is, the typical driver can easily save a couple of hundred bucks a year by seeking out cheaper gas.

The more you drive, the bigger your savings. Todd Larson of Shorewood, Minn., drives 800 to 1,000 miles a week covering a five-state territory for a rotisserie manufacturer. Given that gas prices can vary 25 cents or more a gallon in many areas, Larson can save $500 to $800 a year just by being a little savvier about where he buys.

"Even if you only save 4 or 5 cents, it adds up," Larson said.

Here are some easy places to look for savings:

Check the Internet

MapQuest and MSN Autos use data from the Oil Pricing Information Service (OPIS) to track gas prices across the country. MapQuest also lists stations with diesel and alternative fuels.

Sites such as GasBuddy.com and GasPriceWatch.com rely on volunteer "spotters" or the stations themselves to post prices from around the country. (If you have a smart phone with a data plan, GasBuddy has a mobile site, too.) Participation -- and coverage -- tends to wax and wane along with gas prices, but you may well be able to discover cheaper alternatives just a few blocks from your regular routes.

Although the lowest-priced station can change by the day, certain stations consistently charge less than their brethren, said Jason Toews, co-founder of GasBuddy.com. It can be profitable to you to know which ones.

A 25-cent difference means you pay $5 less for every fill-up of a 20-gallon tank, but sometimes the disparities are even greater. A recent check of major metropolitan areas on GasBuddy.com found the difference between the highest and lowest prices was 60 cents in New York, 44 cents in Chicago and 65 cents in Los Angeles.

Let the prices come to you

Got a cell phone? Of course you do. Several companies will send you a text message with the area's lowest gas prices if you message them your ZIP code.

If your phone supports sending a text message to an e-mail address, you can get prices on the go from gas@gasbuddy.com, sms@mobgas.com or gas@fuelgo.com. If not, try 411sync.com's service by sending the word "gas" and your ZIP code to 415-676-8397. The services are free, but your cell-phone company will charge you for text messages if they're not included in your plan.

For up-to-date delivery to your desktop, check out a small, downloadable program that grabs the gas-price data from MSN Autos.

If you have a compatible GPS system in your car -- Garmin's nuvi 680 or Streetpilot c580 -- MSNDirect offers local gas prices (as well as weather, traffic reports and movie times). That service is free for one year.

Visit the other side of the tracks

Generally, the nicer the neighborhood, the more you'll pay for gas. The station owner's overhead tends to be higher, thanks to more expensive land and steeper property taxes. Refineries also may charge more because of something called "demand inelasticity," which basically translates as "they charge more because they can."

"People are less price-sensitive than they are in less affluent neighborhoods," Toews said.

Get away from the freeway -- and the service bays

Buying gas from a station you spot from the interstate almost qualifies as an "impulse buy," Toews said. Drivers pay for the convenience of being able to zip in and fill up. Continue just a few blocks "inland" from the offramp and you may find a significant price drop.

There's an example of this near my own neighborhood, where three name-brand stations share a one-mile stretch of a road paralleling a freeway. The two stations on offramps consistently charge 15 or 16 cents more than the one in the middle.

Gas also tends to cost more at stations that provide repair services.

Use a wholesale club

The big warehouse stores -- Costco, Sam's Club, BJ's Wholesale Club -- typically offer some of the lowest gas prices in town. The downsides: You may find lines at the pumps, and the cost of membership (typically $40 to $45) will offset some of your savings if all you do is buy gas.

If you shop at one of these outfits anyway, or you're a heavy gas user -- you drive a lot or pilot an SUV, for example -- you may still find the savings worthwhile.

Look for 'loss leaders'

Discount retailers (Wal-Mart, Kmart) and grocery stores that have pumps often charge less than the competition to get people on their lots, knowing that they'll probably spend enough inside to more than make up the difference.

You may find lines at the pumps, similar to those at the warehouse stores, but at least you don't have to pay a membership fee.

Check for local price wars

These can break out anywhere, but may be more common in areas where independent stations are struggling to survive.

Also check stations around the wholesale clubs and discount retailers that offer gas; you may find you're paying only a couple cents more per gallon while avoiding the lines.

Consider a gas rebate card

You'll get the most generous cash-back offers initially if you're brand-loyal. The Marathon Platinum MasterCard, for example, offers a 10% rebate on Marathon purchases for the first 60 days, with a 5% rebate thereafter.

Continued: Consider a general-purpose rebate card

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