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Old 07-02-2008, 06:26 AM
 
529 posts, read 2,455,350 times
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I heard about this concept on the news back when mid-grade gas was 1.99 a gallon. I ignored it back then. I didn't hear about how to do it.
This morning I heard it on the local news again. This time they listed this website http://mygallons.com/
I don't see gas going down anytime soon so it still might be a good deal. I'm just scared to do it incase my gas card isn't accepted or the whole thing is a scam or something. Anybody in the San Antonio area ever use this?
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Old 07-02-2008, 08:18 AM
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Location: Ohio
16,419 posts, read 32,234,767 times
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"Forever" may not be forever.

Priceline had something like this in the early part of this decade, when fuel prices were on the rise. It was a great deal for the customers, but gas retailers started pulling out of the program because it wasn't such a great deal for them. Eventually, Priceline shut their program down with either a 60-day or 90-day notice. Toward the end, I had to drive a 20-mile round trip to get to a station that was participating, just to avoid losing the money I had prepaid on fuel. That made the few cents a gallon I was saving disappear in a hurry. My advice would be not to bother.
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Old 07-02-2008, 08:30 AM
 
655 posts, read 1,642,147 times
Reputation: 447
Quote:
Originally Posted by Bowie View Post
"Forever" may not be forever.

Priceline had something like this in the early part of this decade, when fuel prices were on the rise. It was a great deal for the customers, but gas retailers started pulling out of the program because it wasn't such a great deal for them. Eventually, Priceline shut their program down with either a 60-day or 90-day notice. Toward the end, I had to drive a 20-mile round trip to get to a station that was participating, just to avoid losing the money I had prepaid on fuel. That made the few cents a gallon I was saving disappear in a hurry. My advice would be not to bother.

If you have the capital to pre-pay, probably easier to buy oil futures (or maybe oil company stock) and use the profit to pay for the gas increases. This will work since world oil and gasoline prices are effectively tied together.

If the futures or oil company stock prices go down then the price of gas should also go down so your losses will be partially offset there. The trick is knowing how much to hedge in this way. This is how Southwest Airlines has remained profitable.
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Old 07-02-2008, 03:28 PM
 
529 posts, read 2,455,350 times
Reputation: 164
Quote:
Originally Posted by Bowie View Post
"Forever" may not be forever.

Priceline had something like this in the early part of this decade, when fuel prices were on the rise. It was a great deal for the customers, but gas retailers started pulling out of the program because it wasn't such a great deal for them. Eventually, Priceline shut their program down with either a 60-day or 90-day notice. Toward the end, I had to drive a 20-mile round trip to get to a station that was participating, just to avoid losing the money I had prepaid on fuel. That made the few cents a gallon I was saving disappear in a hurry. My advice would be not to bother.
Thanks! Great Info.

Quote:
Originally Posted by smitty12 View Post
If you have the capital to pre-pay, probably easier to buy oil futures (or maybe oil company stock) and use the profit to pay for the gas increases. This will work since world oil and gasoline prices are effectively tied together.

If the futures or oil company stock prices go down then the price of gas should also go down so your losses will be partially offset there. The trick is knowing how much to hedge in this way. This is how Southwest Airlines has remained profitable.
Interesting way to look at it.
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