[DormantFiber]

I saw this article this weekend and thought I'd share it here about this site that lets drivers lock in gasoline prices.

Hopefully some of you will sign up (I'm not affiliated w/ that site what so ever) and share your experience, I'm tempted to do the same but need to know which gas stations near me participate.

Service lets drivers lock in gasoline prices | Technology | Reuters

[Rugger]

that's been around for a long time

[mindgame]

i just heard about it and there some people who been doing it for awhile. good find though.

[Squeaks4ver]

my dad did something a long while ago that let him buy gas at 1.00 a gal and when he goes to the pumps he types his PIN and all of his gas comes out from this gas savings account. its really neat and apparently he put a few thousand dollars in this account.. gas for us ( where we can type in the pin) has been the same price as it has been since like 1997 1.00. But do we have that where i live? NO! so i have to pay about 5.00!!!

[ReaperX]

I really can't see how hedging your gas prices is a worthwhile thing to do.


In order to make this an effective money saver, you'd have to buy a lot of gas ahead of time and keep your fingers crossed.

It's like playing the stock market without potential immediate earnings.

[Squeaks4ver]

thats pretty much what he did. and it paid off. now if prices fall to a place where he feels comfortable paying out of pocket, he will just stop using his banked gas.. and hold it for a rainy day

[Xodus]

Originally Posted by ReaperX

I really can't see how hedging your gas prices is a worthwhile thing to do.


In order to make this an effective money saver, you'd have to buy a lot of gas ahead of time and keep your fingers crossed.

It's like playing the stock market without potential immediate earnings.

Tell that to Southwest Airlines... Hedging seemed to be a good strategy for them.

With oil now expected to hit 200$/bbl within 2 years. 4$/gal might seem like a dream a few years from now.

[ReaperX]

Might make sense for larger companies (who consume more) but for a normal individual shelling out thousands of dollars on a wim is not too ideal.


The gain is only realized in gradual savings.

[ReaperX]

Also there is alternatives for the consumer to save (i.e. smaller cars, hybrids, public transportation, etc).


Airlines do not have any alternative. They have to fly planes.

[ReaperX]

Originally Posted by Squeaks4ver

thats pretty much what he did. and it paid off. now if prices fall to a place where he feels comfortable paying out of pocket, he will just stop using his banked gas.. and hold it for a rainy day

hm.....

[Xodus]

Originally Posted by ReaperX

Might make sense for larger companies (who consume more) but for a normal individual shelling out thousands of dollars on a wim is not too ideal.


The gain is only realized in gradual savings.

Well, I spend ~ $80-100 /week or ~5500/yr. If hedging saved me 1-3k/yr, it would be worth it, even if it were a few years down the road. Better return than the market.

[ReaperX]

Originally Posted by Xodus

Well, I spend ~ $80-100 /week or ~5500/yr. If hedging saved me 1-3k/yr, it would be worth it, even if it were a few years down the road. Better return than the market.

Right now with my car I pay approx $40.00 every 1.5 weeks.


If I traded my car for a hybrid, I could get away with spending $40.00 every 3 weeks. (given my driving habits stay consistant and gas prices stay the same).



I just doubled my savings. The market isn't great right now. I agree.


........time to take all my money and stuff it into a COD @ 5%.

[Xodus]

Originally Posted by ReaperX

Right now with my car I pay approx $40.00 every 1.5 weeks.


If I traded my car for a hybrid, I could get away with spending $40.00 every 3 weeks. (given my driving habits stay consistant and gas prices stay the same).



I just doubled my savings.

Good luck getting a hybrid right now.

Even if you could get one, tax incentives are going away, further offsetting the savings.

Gas prices are NOT going to stay the same. If oil hits 200/bbl, you will be looking at ~$6/gal.

[ReaperX]

Then again, when people hedged their gas prices back in '98 or whenever they did it, what was the rate of inflation back then ?

Gas prices are up, but then again the cost of living is up and same with inflation.

I'm leery of pre-loaded statistics.

[Xodus]

Originally Posted by ReaperX

Then again, when people hedged their gas prices back in '98 or whenever they did it, what was the rate of inflation back then ?

Gas prices are up, but then again the cost of living is up and same with inflation.

I'm leery of pre-loaded statistics.

Gas is up $1.15/gallong in one year. Rate of inflation is not that great.

[ReaperX]

In both 1980 and 1981, 1000 gallons of gas at the average price cost 14.1% of per-capita disposable personal income in those years.


Today in 2008, we are spending approx. ~ 10-11% of per-capita disposable income.


Gas today is still a steal.