My patient was telling me about gas banks, where you prepay for a certain amount of gas (say 1000 gallons) at an agreed price. So his friend prepaid for 1000 gallons 3 years ago and is about to prepay for another 1000 gallons.

I have not heard about this offered in Southern California. Anybody have this purchase plan near them? Or participate in it?

Jae

 

I heard of this before, some people that are paying only $0.99 a gallon!

 

I wonder where else this is offered. I've heared about this several times before, but never bothered to look into it more. It'd definately be something to check out.

S

 

IIRC there was a catch though...

 

there's always a catch, no one's getting 99 cent gas with no strings attached.

 

Theres no way thats true

Gas stations, which buy tens of thousands of gallons a month, dont even pay 99c a gallon

 

There is only one state that has them, Minnesota. They stock 50,000 gallons of fuel, and whatever you purchase the fuel at is what you get it for, so if you purchased it at .99 cents a gallon, thats what you pay. Story was on CNN http://www.cnn.com/2006/US/05/08/gas.bank.ap/index.html

 

i thougtht it was michigan. o well either way its not south carolina

 

Well, any comodity can be bought on a futures contract. Generally you will pay more than current market if people are speculating the price will rise and less than market if people are speculating the price will fall. The market is the equilibrium between these two forces.

Minus a healthy commision :-)

 

True dat what ChasMan said... Southwest does the same thing with their airline fuel.

 

Try this:

http://www2.firstfuelbank.com/prepaid/default.asp

 

priceline.com used to do that. Then stopped and juss does airline tickets and those things..