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Gas prices could rise after President Donald Trump said the U.S. ceasefire with Iran was over and suggested more strikes could follow.
The national average for regular gas is about $3.80 a gallon, according to AAA — well below this year’s $4.56 peak in May. But renewed tensions could reverse the recent decline, says Patrick De Haan, head of petroleum analysis at GasBuddy.
“The end to the Iran ceasefire is putting upward pressure on oil prices, which could start pushing the national average toward $4 a gallon in the days ahead,” De Haan said in a July 8 post on X. “Watch for potential price increases soon.”
At May’s peak, the average driver was on track to spend roughly $70 more a month on gasoline than before the Iran war began on Feb. 28, according to calculations by the Federal Reserve Bank of Richmond.
For budget-conscious drivers, the risk of another increase in gas prices may make this a good time to review their monthly spending, certified financial planners tell CNBC Make It.
Start with a budget reset
Any time a recurring expense like gasoline becomes more expensive, it’s a good time for a monthly “budget reset,” says Alvin Carlos, a certified financial planner at District Capital Management.
Start by tallying everything you’ve spent over the past two months in a notebook, a spreadsheet or a budgeting app, he says. Sort expenses into three categories:
- Fixed costs, such as rent, insurance and loan payments.
- Essential variable expenses, such as groceries and gasoline.
- Discretionary spending, such as dining out, subscriptions and entertainment.
Once you’ve identified where your money is going, set a new target for your variable and discretionary spending based on your current costs.
“If gas costs an extra $30 or $40 a month, try to find roughly that amount elsewhere in your budget,” Carlos says.
Recurring subscriptions are often the easiest place to begin.
“Cut subscriptions before you cut anything else,” says Mark Sanaiha, a certified financial planner at Macallen Capital in Phoenix. “The average household is paying for streaming services, apps and memberships they forgot they signed up for.”
Restaurant spending is another common place to look.
“You don’t have to go to zero,” Carlos says. “Cutting restaurant spending from twice a week to once a week isn’t that bad.”
The idea isn’t to eliminate every nonessential expense. Instead, prioritize the spending that matters most to you and trim back where you’ll miss it least, Carlos says.
Look for easy savings at the pump
Carlos recommends using comparison-shopping apps such as GasBuddy and AAA to find the lowest-priced stations nearby. Drivers who already belong to warehouse clubs such as Costco, Sam’s Club or BJ’s may also find below-average gas prices there, while grocery fuel rewards and gas station loyalty programs can shave a few cents off each gallon.
Some gas rewards credit cards also offer elevated cash back on fuel purchases. If you use one, be sure to pay the balance in full each month, Carlos says — otherwise, interest charges can quickly outweigh any rewards earned at the pump.
He also recommends combining errands into a single trip and keeping tires properly inflated to improve fuel efficiency.
“The cheapest gas is the gallon you don’t burn,” Carlos says.
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