Before the work was done, the cost was ...
($4/gal)*(8 gal)/(340 mi) = $32.00/(340 mi)
After the work was done, the cost was ...
($4/gal)*(7 gal)/(350 mi) = $28.00/(350 mi)
The savings is the difference of these costs:
(32.00/340 -28.00/350) $/mi ≈ $0.01/mi
After the mechanic worked on the car, it cost about $0.01 per mile less to run.