Gas Buying Club? Not sure what the catch is...

Danny_Ocean · 06-30-2008, 07:49 PM

Paragraph 3 has me a little

http://www.mygallons.com/how_it_works.html

Joeaksa · 06-30-2008, 08:15 PM

Hmmm, wonder if its for real?

cstreit · cstreit's Garage

I'm going to call foul. WHy? "Locations - Your MyGallons Card is accepted at all gas stations accepting USBank's Voyager cards."

Really so Mom&Pop in backwater Kentucky and a basic setup are members with electronic debiting?

Danny_Ocean · 06-30-2008, 08:19 PM

Apparently so. I found it from a news article link.

They don't say how much gas you can buy in advance. Could I buy 5000 gals. at today's prices?

Danny_Ocean · 06-30-2008, 08:20 PM

Quote:

Originally Posted by cstreit

I'm going to call foul. WHy? "Locations - Your MyGallons Card is accepted at all gas stations accepting USBank's Voyager cards."

Really so Mom&Pop in backwater Kentucky and a basic setup are members with electronic debiting?

Gotta input a zip code to see where the stations are located.

Porsche-O-Phile · Porsche-O-Phile's Garage

That just links to the google database of gas stations. Something still smells kinda' fishy about this. . .

Danny_Ocean · 06-30-2008, 08:50 PM

Here's the article:

http://www.streetinsider.com/Press+Releases/MyGallons+Provides+Americans+With+a+Solution+To+Fi ght+Rising+Gas+Prices/3781588.html

red-beard · red-beard's Garage

I used to buy gas through Priceline, along with groceries and all sorts fo stuff, before they killed that part. I used to save at least 10%.

legion · 07-01-2008, 04:17 AM

This sounds earily like the program my local natural gas company has.

They allow you to "lock-in" gas prices at summer rates for the winter. If you bet wrong (and gas prices dropped), they hold you to the contract amount. Funny thing is, if you bet right (and gas prices went up), they assess a "market fluctuation fee" that is ALWAYS more than the actual cost of the gas. Bottom line is that you always end up paying more than market price with this program.

Porsche-O-Phile · Porsche-O-Phile's Garage

Apply the Laws of Common Sense:

1. "If it sounds too good to be true. . ."

2. "If someone is trying to sell you something, it's NEVER in your best interests - it's in theirs"

Paco Anton · Paco Anton's Garage

In fact this can be true if the company buys oil futures. Using financial derivatives such as futures you can buy oil at today's prices without taking delivery until a few months ahead. When the time comes you sell the futures instead of receiving the oil and use the money to pay for the increase in gas prices.

I am sure someone can explain this better than me

Danny_Ocean · 07-01-2008, 09:32 AM

Quote:

Originally Posted by Paco Anton

In fact this can be true if the company buys oil futures. Using financial derivatives such as futures you can buy oil at today's prices without taking delivery until a few months ahead. When the time comes you sell the futures instead of receiving the oil and use the money to pay for the increase in gas prices.

I am sure someone can explain this better than me

That's what I figured, but after reading Para. 3, it seems they can adjust the price at will. They don't tell you up-front how much fuel you can purchase at one time. I'd just go ahead and buy all my fuel one year in advance, but something tells me they would not allow it.

Paco Anton · Paco Anton's Garage

As I see it, you buy a definite amount of gas at "today" prices. Then they lock that amount in oil futures. Para #3 says that they do not take the risk of local price variations but will use a national average to compute prices and deduct gallons from your account.

The trick is that you need to buy up front a certain volume of gas gallons and they quote the gas price daily, so they can adjust their futures hedging formula.

If you think prices can't but go up it could save you a lot of money. However, if the prices go down you will end up buying at a higher prices than the rest.

Danny_Ocean · 07-01-2008, 10:39 AM

Quote:

Originally Posted by Paco Anton

If you think prices can't but go up it could save you a lot of money. However, if the prices go down you will end up buying at a higher prices than the rest.

True, true...but there's no indication gas prices will be going down here anytime soon...

Joeaksa · 07-01-2008, 12:12 PM

CEO of this company is on Fox News right now giving a good interview.

Por_sha911 · Por_sha911's Garage

This is in the Subscription and Services Agreement:
2.3 MYGALLONS reserves the right to limit, modify or discontinue the MYGALLONS Services at any time. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, YOU ACKNOWLEDGE AND AGREE THAT MYGALLONS MAY CHANGE, AMEND AND RESCIND THE FEATURES, PRICING AND TECHNICAL REQUIREMENTS OF THE SUBSCRIPTION, THE MYGALLONS SERVICES OR ANY MYGALLONS SERVICES PACKAGE AT ANY TIME BY POSTING NOTICE ON THE MYGALLONS Network. If you are dissatisfied with any modification to the MYGALLONS Services, your sole remedy will be to terminate the MYGALLONS Services in the manner described in this Agreement.

Sounds to me like they will lock in a price until they decide to change it...

Tidybuoy · 07-01-2008, 01:13 PM

Sounds just like oil speculation buying - what's the difference.

Maybe the speculators realize the bubble is going to pop and this is their creative form of down side protection.

widgeon13 · 07-01-2008, 01:49 PM

Just shows how much margin is in the product and that we ARE getting screwed all along. Just what's needed another company to get a cut of the profits.

Fuch ME!!!!