WhyNot?

Monthly Maximum Gas Prices

Category: Fuel
Responses: 7 (6 in support, 0 neutral, 1 in opposition)
Number of views: 904
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The gas prices fluctuate so quickly and by such a degree that people are often caught off guard. I know I would be willing to pay a little for insurance to ensure that I knew what the price would be for the whole month and not have to wait for the inevitable price decrease. This can be feasibly accomplished. The gas stations should allow customers to purchase cards that will ensure the price of gas will not exceed a certain price. Think of these cards as insurance, the customers pay a little extra to know the maximum price they will pay for gas that month. Once at the pump, they will always pay the lower of the card or the price at the pump. If done right, the gas stations will be able to be just as profitable if not more so and consumers will have the option to buy a little peace of mind.

Guat, Apr 25 2004

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Sounds strangely familiar to my idea posted on the same day.....hmmmm

swilli28, Aug 03 2004

You don't have a basic understanding of business or economics. If you are paying the minimum of the price on the card or the price at the pump, the store owner will invariably encounter a time when a LOT of money is lost, unless the price at the pump is inflated to account for the statistical likelihood that gas prices will rise so as to make up the money that would be lost later when the store owner must purchase the more expensive gasoline.

As stated, your idea is a horrible one for the store owner. The fix I stated above would likely end up costing the consumer much more in the long run since it is not likely to have a DRASTIC change in gasoline prices unless a catasrophe happens... in which case, if everybody was buy the cheaper gasoline, the store would be forced to restock at a much higher price than the other stores around it.

I can see absolutely no good coming from this plan.

nameless_centurian, May 29 2009