Here's a tip I use, used rags go into an old coffee can I keep outside, I also let my funnel's drain excess into the same can. I never keep a gas can with gas in it, I use it only when I need it and pour excess into my truck...
Better safe than sorry my friends...

 

Fog and rain all day here I've been drinking and i still don't understand this.

 

Not sure about the oily rags thing, I know that if they are kept in a pile it's possible for the heap to generated enough heat to ignite the rags. That's how our church (under rennovation) went up- pile of solvent soaked rags.
As far as the gas can thing, I've kept gas in my garage for decades- usually in 5 gallon gasoline containers, to fuel the lawn mower, snow blower, pressure washer, etc......... So far no problems.

 

I've never worried about motor oil on rags, but solvent based stuff like boiled linseed oil is another thing.

 

Boiled linseed oil will do this.. I don't worry about rags with regular motor oil on them.

 

I also keep rags in a sealed can, but being in earthquake country I always keep a full 5 gallon can of gas just in case I need to run my refrigerator for a while off my generator if we lose power for a while. I keep the gas out back in a shed and not the garage.

 

I had thought about not keeping a gas can in the garage, but then thought hell I keep a bike and snow blower in here with gas in the tanks. The tanks are vented so there shouldn't be a problem with a gas can. However I won't leave rags soaked in any light products laying around.

 

" I never keep a gas can with gas in it, I use it only when I need it and pour excess into my truck...""

Must be a pita to have to get gas every time you mow the lawn, or run the weedwacker..
what the hell good is an empty gas can?

 

During Super storm Sandy if you didn't have a full can of gas for your generator, you were SOL. The gas stations had gas, just no power to pump it.,,

 

I never have oily rags. I use a paper towel and toss it when I'm done with it. And I've kept gas in a safety gas can all of my life.