After recently enjoying low gas prices over the last couple of years, consumers are seeing prices climb, driven by the conflict in Iran.
With budgets already stretched thin in many households, any sudden extra costs can have a real impact. And some experts warn that when gas prices go up, so does everything else, from groceries to airfare to utilities.
“Rising fuel prices don’t just hit us at the gas pump,” said Michael McAuliffe, founder and president of Family Credit Management, a nonprofit credit counseling agency, in an email. “They often push grocery prices higher, too, making finances even harder.”
The American Farm Bureau Federation has also sounded the alarm on the conflict in Iran and its impact on food prices. “These supply chain shocks are expected to drive already record-high input prices even higher at a time when farm margins are already extremely tight and many farmers are underwater,” it warned President Donald Trump in a March letter.
Regardless of which direction gas prices go over the next few weeks, there are things you can do to get ahead of “gas-flation” and protect your budget.
[Read: How to Avoid Sticker Shock at the Gas Pump: 6 Essential Tips From U.S. News’ Senior Car Expert]
What Can Americans Expect From Gas Prices?
Average national gas prices reached $3.72 as of March 16, according to AAA. That’s up from $2.93 from a month prior. For a vehicle that holds 15 gallons of gas, it costs an additional $10.35 to fill the tank. If the conflict in the Middle East causes the price of oil to rise even more (or simply creates more uncertainty), consumers should prepare to feel additional pain at the pump, in the grocery store, after they open utility bills and when they book flights.
Here’s how to ease the sting.
[Read: These Are the 5 Best Free Budgeting Apps to Use]
Lock in Airfare ASAP
If you’re booking summer travel, don’t hesitate, as fuel prices are already starting to impact airfares.
Flight-tracking apps and sites can help you view flight price histories and identify a competitive price. Being flexible about the day and time you travel can also help you score a great airfare.
If you have credit card rewards points to use, do it. That’s another way you can keep airfare manageable.
Compare the Best Car Insurance Companies
Limit Grocery Runs When Food Costs Rise
The conflict in Iran has the potential to skyrocket food prices. “We are deeply concerned that failure to act could lead to disruptions to the food supply chain not seen since 2022 when food price inflation reached 40-year highs,” the American Farm Bureau Federation wrote in its March letter.
Start thinking strategically about your grocery bills now. Once per month, kick off a weekly challenge to use the canned, boxed and frozen foods you already have at home, supplementing only with a few fresh items, McAuliffe says.
During your shopping weeks, plan your menu around sales flyers and take advantage of digital coupons.
Another tip: “Grouping errands in the same area into one trip instead of multiple drives throughout the week can reduce gas use and stretch your tank further,” said Melissa Cid, consumer savings expert at MySavings.com, in an email. Plus, by intentionally limiting your trips, you’ll get just what you need and be less likely to overspend.
[READ: How to Create and Maintain a Family Budget]
Lean on Loyalty Clubs and Rewards Programs
Store loyalty programs are usually free to join and can knock a few dollars off your purchases to help offset increases in prices. Sometimes, offers come from places you least expect.
For example, T-Mobile users who use the T-Mobile Tuesdays app can get additional savings at Shell gas stations, freebies and discounts from chain restaurants, and other random perks.
Using certain rewards credit cards can help you earn cash back on your everyday spending, such as gas, groceries and dining out, which can help boost your budget. Some cards with gas rewards include:
— Citi Custom Cash® Card: Earn 5% back on your top spending category, which adjusts automatically
— Blue Cash Everyday® from American Express: The 3% back on groceries, online retail purchases and gas can be really helpful since each of those spending categories could be impacted by higher fuel costs.
— Discover it® Chrome: Cardholders get 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter.
Make Small Tweaks to Offset Utility Bill Bumps
“Higher costs tend to make us more aware of how much energy we’re actually using and the real trade-off between comfort and dollars,” McAuliffe says. “Sometimes the biggest savings come from small habit changes.”
Try keeping blinds and curtains closed during the hottest part of the day to block heat (or cold during winter months). Start changing your HVAC filters regularly and using programmable thermostats, for which many utility companies offer rebates.
Taking faster showers and unplugging electronics when not in use can also help lower utility bills.
Audit Your Recurring Memberships
Another easy way to “find” money to help your budget through a gas-related cash crunch?
Review your bank and credit card statements for recurring charges, McAuliffe says. “Many people are still paying for apps, subscriptions or memberships they forgot about, or don’t really need or even want.
Canceling even a few unused services can save $20 to $50 a month, helping offset those higher costs,” he says.
More from U.S. News
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10 Ways to Save Money on a Tight Budget
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Skyrocketing Gas Prices Are Increasing the Cost of Everything: 5 Tips to Stretch Your Dollar originally appeared on usnews.com
