Gas prices have a major impact on consumer cash flow and influence people's daily routines and their overall economic stability.
The head of petroleum analysis at GasBuddy, Patrick de Haan, talked with TheStreet about how to save money at the pump. He also shared thoughts about how the transition to electric vehicles will affect gas prices in the future.
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TheStreet host J.D. Durkin, from the floor of the New York Stock Exchange, asked de Haan about some tips he has for the many people concerned about their wallets.
De Haan said he believes drivers are worried about what to expect, especially when planning for summer road trips. Consumers believe gas prices are generally lower in the July and August months, he said.
Using apps such as GasBuddy can help drivers shop around for the best gas prices when planning travel. Motorists can leverage the app to check prices for fuel in their immediate area and gas up at the lowest-cost locations.
"They may be surprised when it comes to paying for that fill up," de Haan said. "There are multitudes of ways of saving — free loyalty programs, which most stations have reduced prices — credit card rebates. There are rewards."
Awareness is a big key to saving money on gas
There is also the reality that the method drivers use to pay for gas can affect the prices they pay.
"Stations have cash discounts. Even GasBuddy has a payments card," he said.
De Haan explained that drivers who are knowledgeable about how they choose to travel is a big part of the equation.
"All of it comes down to an educated consumer," he said. "Things like driving efficiently, using your cruise control, not hauling excess weight. There are a lot of different things that people can do to reduce what they're paying at the pump."
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The adoption of electric vehicles
Durkin asked de Haan about the growing shift toward electric vehicles and what effect it will have on the cost of fueling up.
De Haan said this will be an interesting dynamic to follow.
"We've been seeing a lot of impact from the White House incentivizing the shift to EVs and investing billions in infrastructure," he said. "And that could change in the years ahead."
He addressed the larger economics behind the transition as it applies to the price of gas.
"Will we see lower prices with lower demand?" de Haan asked. "But the biggest question is how quickly does the transition happen? Will oil companies shut down refineries? Will they start lowering investment on existing assets? And will that undermine overall capacity?"
The petroleum expert suggested that the move toward electric vehicles might not happen exactly as many expect.
"It could be a very bumpy ride, but I don't think the shift is going to happen nearly as quickly as a lot of us think," he said. "I think it's going to be more drawn out. We're starting to see some of that and that will allow a natural healing."
The GasBuddy analyst talked about how petroleum producers should be expected to react.
"I don't think oil companies are going to quickly be shutting down their assets, their refineries, but this is going to be a longer road to transition," he said. "And I don't know that there will be a whole lot of bumps now, but maybe in 5 or 10 years, should we see a drastic change in policy?"
He said the government could play a major role.
"That's where things like the White House can have a major impact on the speed of transition," de Haan said.
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