But various experts, including the head of the OPEC cartel, are predicting prices will hit US$200 a barrel - and that means we'll be paying about $2 a litre at the bowser.

On top of the last interest rate rises, the cost of fuel is creating financial stress in many Australian households. More than ever, we all have to look carefully at how we can make every tank go further.

If you're on a tight budget, shop around for the cheapest petrol stations and fill your tank when you see a good deal. Motoring bodies in NSW and Victoria (NRMA and RACV) publish the lowest daily prices area online. In other states look out for the Federal Government's FuelWatch scheme, which will publish national petrol prices online by the end of the year.

Drivers under the pump

Take full advantage of the shopper docket discounts offered by Coles and Woolworths at their affiliated petrol stations. A saving of 4c a litre adds up over the year, but make sure the petrol station is competitive in its pricing.

It's not just about finding the cheapest fuel - look at ways of driving that cut your consumption. Drive 10 to 20km/h below the speed limit on freeways and try not to suddenly accelerate or brake in congested areas.

Keeping your tyres correctly pumped up, taking heavy items out of the boot or off the roof, and winding down the windows
in summer instead of turning on the air-conditioning all make a tank go further.

Think about reducing your actual car use too. How much would you save each week if you took public transport to work? Factor in road tolls, parking, insurance and servicing to the cost of driving. Do the sums and you'll be staggered how much the family wagon costs to run. You might even find that it's worthwhile getting rid of the gas-guzzler, particularly if it's a second car, in favour of using public transport regularly and taking the occasional taxi.

Switching to gas

If you want to save money on fuel in the long term, consider switching to gas. Liquefied Petroleum Gas or LPG can be about 50 per cent cheaper than petrol, litre for litre, and is better for the environment. It reduces exhaust emissions, increases the life of your engine and, in some cases, gives you better performance.

Converting your car to gas can cost you up to $4000. I know that sounds expensive, but in the long run you should end up well ahead because you'll save so much on fuel, especially if you do lots of kilometres. It costs no more to convert your car to dual-fuel than it does to have it made LPG-only. Dual-fuel gives motorists the flexibility of being able to fill up with petrol and gas.

One disadvantage of switching to gas is the size of the tank, which can take up a lot of boot space. If you have a car with enough clearance, such as a four-wheel drive, the gas tank can be installed under the floor.

You can buy LPG at 3200 retail outlets nationwide. To see where they're located, visit www.lpgaustralia.com.au. I found five stations within a 10-minute drive of my place.

Check with your vehicle manufacturer before you switch to gas and make sure your car warranty won't be affected.

Finally, if you're in the market for a new car, checking out the growing number of hybrid varieties should be your first stop.