Since gasoline rates seem to fluctuate more frequently than any other commodity, I think being able to "Lock In" to a rate for a given period of time, might be an attractive choice for many people. I'm not yet sure how the cost would be figured, but it would serve to provide some sort of insurance for higher gas prices. Perhaps it could be part of some sort of investment choice for stockholders of a particular oil company. Or, a way for non-stockholders to obtain something like a certificate of deposit for a specific company. The time period could be maybe three to six months. I, obviously, know very little about investing, but I think the idea could be developed in a way benficial both to the oil companies and the buyer.
I agree
No opinion
I disagree![[SPAM]](http://www.whynot.net/images/flagasspam.png)
Flag as spam
Add your comment
Hi,
is this similar to what you are suggesting?
http://www.nymex.com/jsp/markets/gas_pre_agree.jsp
Lock-in methods for volume buyers are readily available, as noted by hoolet. Methods for retail customers to do a similar lock-in (also suggested by Guat), might be of marketing interest. Retail vendors already know how to handle the economics of fluctuating prices. They could sell prepaid cards with 25 or 50 gallons at a specified price. That would also benefit them by forcing repeat business.
Maybe they would want to sell them as gift cards. More useful than fruitcakes, especially for teens.
This is an idea that might be attractive to Sears, Walmart, or Costco.
I like sevan's variation, but make it a debit card that stores gallons instead of dollars.
In that case, it would be useful in the same way my pre-paid calling card is useful. Excellent for emergencies and traveling.
Yes, Mike, using a type of debit card for gallons of gas is what I was thinking too. The buyer would be able to add to the card at whatever the price was per gallon at that time. And,using sevans idea, I could see stores limiting the amount of gallons that could be held on the card at one time (to ensure they wouldn't lose too much money if the price of oil skyrocketed later). I would think any large company that would be getting paid in advance for a product before it is delivered could offset their risk of losing money by accumulating interest on the "cash advance" of the card consumers as well. ** Bottom line for me is I think I would buy one.**