In these times of high gas prices, it seems unfair that large companies (e.g., airlines) can hedge their fuel needs at preset prices while ordinary consumers cannot. Unleaded gas commodity futures are not practical for most people (who wants to take delivery on 42,000 gallons??). Why don't fuel providers sell prepaid gas cards where consumers can "lock" at the prevailing rate- similar to the offer rental cars offer you to "prepay" at a rate per gallon.
More specifically, I'm suggesting fuel providers allow consumers to pay for x # of gallons on a prepaid card (hopefully at a discount to the spot rate since they have your money)- say in 50 gallon increments. When the consumer hits the pump, they pay with their card by the number of gallons left on the card- not a $ amount. This system wouldn't be that difficult to implement and would effectively allow consumers to hedge their needs as they deem necessary. The fuel providers own the commodity, so little risk to them (and they get our money up front).
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I have heard some sort of gas co-op where they bought the riget to gas at a particular price beforehand.
This does exist:http://wcco.com/traffic/local_story_225084457.html
GREAT idea. How do we get this nationally? And how can it be "non-pump specific" - meaning, you can go to any gas station if you are in the club?
They allready have these: www.firstfuelbank.com is one of them.
this is a wonderful idea....if this does exist they should make this uniform across the world because rising fuel prices are no longer a problem of indiviual nations but a concern of all.
I had this same idea for a couple of years now. I would make it a co-op purchase your gallons there so you could use your card at any pay at the pump station.
The post office is finally doing this with stamps.
We had a gas seller in our area, called "Ampride" that sold gas pre-paid, but I guess they went out of business recently. They operated from a former gas station with unattended pumps--the lot was occupied by a farm-tractor dealer, so I suppose he 'minded' the pumps to protect against emergencies, but they weren't his.
The pumps were chained last month and I heard that the 'members' were to be refunded any money they had left on their cards. Seems to me that not having employees would decrease the overhead and keep him in the black, but the people that were members had prepaid gas at less than $3.00 a gallon and I guess Ampride wasn't protected from that. I supposed selling those $1 doughnuts and pops at a regular gas station probably does help pay the bills, too.
it's a superb idea and something I'm highly in favor of. in fact it even exists on a very small level in certain areas:http://www.npr.org/templates/story/story.php?storyId=5423229
I remember about 2 years ago in Calif. gas (very briefly) dipped to $1.99 a gallon. I filled up and actually saved the receipt for posterity because I knew it wouldn't last! sure enough the next week it was back up to $2.10 a gallon and never looked back until we got to almost $4 a gal.
especially would take advantage of this concept at times when I have extra money in the bank and no debt and prices are rising, which was the case in the very recent past and will be happening again in the near future.