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Keeping your fuel costs down

Keeping your fuel costs down

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Date Published : Thursday, June 19, 2008

With prices at the pump on the rise in Australia and many other parts of the world, consumers considering taking out a car loan to pay for a new vehicle might be interested in tips for saving on fuel costs.

But what influences how much we pay to fill up? Oil prices are one of the major factors but according to news.com.au, they are not the only reason gas costs are climbing upwards.

The performance of the Australian dollar is also a factor, it says. As international oil prices are set in US currency, the relative strength or weakness of the Aussie dollar affects the price of the crude oil that is refined to produce petrol.

Petrol prices are also locked in to international benchmarks intended to ensure local refineries do not export all of their supplies overseas in order to boost profits. Australia's fuel prices are linked to Singapore Mogas 95 Unleaded, the site notes.

And of course, there are fuel taxes and duty. According to a senate committee report cited by the news provider, these charges account for between 30 and 35 per cent of the price of petrol for consumers.

So what can Australian drivers do to keep their bank account healthy and shave a few dollars off the cost of running their car?

First of all, the website says slow down - higher speeds, hard acceleration and braking all burn fuel.

Car owners should also avoid using their car for short trips, as a cold engine uses up to 20 per cent more gas.

Regular servicing meanwhile can increase fuel efficiency, while sparing the air conditioning will also save petrol.

According to the Federal Chamber of Automotive Industries, a record 1.05 million new cars were bought in Australia last year.

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