How to Lock in Low Gas Prices to Save Money on Gas
There Is a Way To Lock In Low Gas Prices
Wouldn’t it be great to be able to lock in the current low gas prices and save money on gas, no matter what happens to gas prices in the future. Believe it or not, it is actually possible to lock in the current low gas prices and save money on gas going forward. It does not involve complicated gasoline futures trading schemes or anything to do with the financial markets. It is as simple as signing up for a service that allows you to lock in the current low gas prices to hedge against future increases in the price of gas. The company behind this gas price lock in service does all the futures trading and financial wizardry behind the scenes to lock in current gas prices for their customers. Customers just pay for gas at any gas station of their choice using a debit or credit card, receiving their discounted gas price as a reimbursement from the company that provides the gas price lock in service.
Locking In Low Gas Prices Is Possible
America is an incredible place when it comes to innovative businesses that find a market niche that demands a product or service. In this case, there are hundreds of millions of Americans who are seeking economic relief when they fill up their cars, sports utility vehicles (SUVs), and light trucks at the gas pumps.
Of course, many motorists suspect that these savings at the gas pump are not going to last, and they are probably correct. How many people are willing to lock in the current low gas prices, so they can continue to save on gas costs for years to come? This is where an innovative company called MyGallons.com has developed a solution that anyone can use to ensure that they save on gas costs and lock in currently low gas prices, no matter where the price of gas goes in the future.
What MyGallons offers consumers is a way to pay for gas up front now at relatively low prices, and bank those pre-paid gallons of gas for use in the future when gas goes back up in price. If strife in the Middle East or a sudden drop in production of oil or a surge in demand for gasoline causes the price of gas to skyrocket at the pump, it will not matter to anyone who has pre-paid for their gas using MyGallons’ pay up front at current prices gas service.
Lock In Gallons of Gas at Less Than $2 Per Gallon
How To Lock In Low Gas Prices By Buying Gas At Low Prices
How do consumers use MyGallons to lock in low gas prices? The process is rather easy, but before anyone takes the leap and buys 100s or 1,000s of gallons of gas in advance, they have to understand the fees associated with using MyGallons’ service and their actual break-even point when using the company’s pre-paid gas service.
Here is how it works:
- A customer pays the current prevailing wholesale price for pre-paid gasoline in their state, as listed on the MyGallons website. A purchase could include 100s or even 1,000s of gallons of gas.
- The number of gallons of gas a customer purchases are put into their MyGallons.com account for use at any gas station at any time in the future.
- Once the price of gas rises to a level that it makes sense to use the pre-paid gallons of gas, the customer uses their own credit card or a debit card issued by the company called a MyGallons.com Fuel Savings Card to buy gas at any gas station that accepts credit or debit cards. Gas prices must rise approximately ten percent above the amount the customer paid to account for MyGallons fees for their service to, before a customer starts saving money.
- MyGallons will automatically compensate any increase in gas prices paid at the pump compared to the price level the customer locked in, minus the MyGallons fees. Reimbursement is done either by depositing money directly into a customer’s bank account or by depositing money onto the Fuel Savings Card. The reimbursement method is chosen by the customer.
It is that simple. Since either a credit or debit card can be used to purchase gas, a customer can go to any gas station in the world to purchase gas, as long as they accept credit or debit cards. There is no need to go to cooperating gas stations or endure any kind of restrictions regarding where gas is purchased. The gas station just has to be able to process a credit or debit card transaction.
So what is the catch? The catch is the hefty fees that MyGallons.com charges for their gas price lock in service. The fees include:
- A $30 annual membership fee per vehicle.
- A 6% fee when a pre-purchased gas order is placed.
- A $10 bank card issuance fee when ordering a MyGallons Fuel Savings Card (this fee can be avoid by using a credit card to buy gas and direct bank account deposits for reimbursement).
- A fee of 6 cents per gallon, when the gallons banked at MyGallons.com are used to buy gas.
What does this mean as far as when pre-purchasing gas at low prices using the MyGallons.com debit card starts saving MyGallons.com customers money? Factoring in the fees, gas prices need to rise approximately 10% from where gas was pre-purchased to start saving a customer of MyGallons.com money.
For example, if gas were pre-purchased at $2.00 per gallon, gas would have to rise to greater than $2.20 per gallon to start saving the customer money. In the interim, while gas prices are below the 10% break-even threshold, a customer would pay for gas using other means than the gallons banked with MyGallons.com. Once gas goes above the 10% threshold of $2.20 per gallon, they can start using the gallons they banked at MyGallons.com for $2.00 per gallon.
If a large amount of gas were pre-purchased at $2.00 per gallon, a MyGallons.com account with thousands of gallons of gas banked at that price would save a consumer a lot of money, if gas were to rise back to the $3.00 to $4.00 range in the future.
An Example of How MyGallons.com Saves Consumers Money at The Gas Pumps
The MyGallons.com gas price lock in service is something individuals and businesses that consume a lot of gasoline can use to save a significant amount of money, should gas prices rise significantly in the future. How do consumers actually save money using MyGallons.com? Let’s look at an example. If a business paid in advance for 10,000 gallons of gas at $2.00 per gallon using MyGallons.com, it would cost them for $22,000 (accounting for the 10% in fees that equals $2,000). If the company then purchased gas at gas stations over the course of a year for an average of $3.00, they will have paid $22,000 for $30,000 worth of gas. MyGallons.com would have either reimbursed their MyGallons Fuel Savings Card with $8,000 or deposited $8,000 into the company’s bank account, based on the customer’s preference. A rise in gas prices back to $4.00 per gallon would save the business $18,000 in annual gas costs. That is money that can go straight to a business’ bottom line. For individuals, the savings would be less because individuals use a lot let gas, but could still be several hundred dollars over the course of a year.
MyGallons.com customers can track how much pre-purchased gas they have used via an account at MyGallons.com. MyGallons.com has no limit on how much gas customers can pre-pay for and the pre-paid gallons of gas can be held indefinitely until the price of gas at the pumps rises to a level that the customer wants to use them. The one caveat that MyGallons.com has regarding use of pre-paid gallons is that they limit redemptions of pre-paid gas to 150 gallons per month per vehicle. If a customer wants to use more than 150 gallons per month per vehicle, MyGallons.com requires purchase receipts to verify that fuel was actually purchased and used. MyGallons.com says they do this to ensure that customers are actually using their service as intended for real-world gasoline purchases, rather than using it to speculate in the gasoline futures markets.
MyGallons.com ultimately wants their customers to save as much money as possible on gasoline purchases and recommends that customers use a credit card that provides discounts on gas purchases, cash-back bonuses, or points to maximize their savings. They also recommend having money deposited directly into a customer’s bank account to avoid the MyGallons Fuel Savings Card debit card fee.
It really is possible to lock in the current low gas prices and save money on gas in the future. Yes it is. One just needs to pre-purchase gallons of gas at low prices and wait for the price of gas to rise.
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This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2015 John Coviello