Tyler Cowen points to gas prices higher than a rental car company’s price for refilling your tank.
- Gas at the pump in downtown Birmingham: $3.99/g.
Gas from Hertz when you return it: $3.05/g.
Still, be careful out there — there may be other costs besides per-gallon costs, such as flat service charges on gas refills. And this doesn’t mean you should “prepay” the gas which requires you to return the car empty in order to make out well since you’re prepaying an entire tank of gas (again, check the service fees).
Actually, it’s even better. Some companies have year-long contracts that state the refueling rate. I just came from Hawaii, where the stations were asking over $3 but I paid just $2.20.
I suppose after this year’s volatility, this is the last year such negotiated rates are likely to be competitive.