Gasoline prices climb to $5 a gallon, hitting record high: AAA

Gas prices hit a new all-time high in June, according to AAA. (iStock)

Gasoline prices hit a record high in June, topping $5 a gallon for the first time since AAA began tracking prices in 2000.

The price of oil hit more than $120 a barrel in June, nearly double the price in August of last year, according to AAA. This happened as demand for oil continued to outpace tight global supply.

And as the summer driving season has accelerated, gasoline in the United States has become more in demand. Jumping 58 cents from May, the national average gasoline price in June rose to $5.01, an all-time high.

“Based on the demand we’re seeing, it appears the high prices haven’t really deterred drivers,” said AAA spokesman Andrew Gross. “If prices stay at $5 or above, we could see people start to change their daily driving habits or their lifestyle, but that hasn’t happened yet.”

If you’re looking to reduce your car expenses in the face of rising gas prices, you can take steps to lower your car insurance payments. Using a marketplace like Credible allows you to compare multiple providers and find your custom rate in minutes without affecting your credit score.

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Gas demand remains high

Despite rising prices, demand for gas has continued to grow, according to AAA. It hit 9.2 million barrels per day as drivers head into the summer months.

“This dynamic between reduced supply and increased demand is contributing to higher prices at the pump,” AAA said. “Coupled with rising crude oil prices, this means the price of gas is likely to remain high for the foreseeable future.

But as gas prices rise, one company is doing what it can to reduce the cost of another product: donuts. National donut chain Krispy Kreme announced that every Wednesday this summer it would reduce the cost of a dozen glazed donuts to match the national average price of a gallon of gas that AAA brings in each Monday. The typical cost for a dozen glazed donuts is around $12.

If you’re struggling with rising gas prices and looking to save money, you might consider lowering your car insurance premium. Visit Credible to compare multiple car insurance providers at once and choose the one that’s right for you.

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How to save on your car expenses

As the cost of driving continues to rise, drivers can take several steps to help reduce their automobile expenses. Here are a few:

Buy a used car

Drivers can save money by buying a used car, rather than a new one – and not just on the initial cost of the vehicle. They could also potentially save on the cost of insurance. Nationally, auto insurance premiums drop about 3% for every year the vehicle ages, according to one study.

Improve your driving history

A clean driving record with no at-fault tickets or accidents will help drivers earn better average car insurance rates. Although violations disappear from the driver’s record after a while, he can also take proactive measures to eliminate it, such as taking a driver safety course.

Buy discounts

Different insurance companies offer discounts for various reasons. For example, teenage drivers can get a discount for getting good grades. Other companies also offer better rates if you combine your car policy with another type of insurance, such as home insurance.

If you’re shopping for new car insurance, you can visit Credible to compare quotes from multiple companies at once and find the best deal for you.

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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