If you dislike the way fuel prices fluctuate over the course of a year, you can lock in a price beginning this fall with the Fuel Bank system. The Fuel Bank allows you to purchase gas at today's price and and use it at anytime in the future even if gas prices increase. The system works like this:
You purchased gallons of gasoline online at the price listed by credit card and then you can pick-up your pre-paid gallons at any gas station in their system (they are currently laying the groundwork to go nationwide and plan to do so this fall) by using the Fuel Bank card you’re given. No matter what the price reads at the gas station, you pay the price you locked-in your gallons of gas at when you pre-paid. Best of all, if that pump price falls below the price you paid on the Internet, the Fuel Bank will credit the you with the difference according to the site
For those on a budget, the Fuel Bank allows you to budget your gas costs rather than being at the mercy of fluctuating gas retail prices. Since you have already paid in advance, you know the exact price each gallon will cost even if they are fluctuating wildly from week to week at the gas stations. For those that feel that gas prices will continue to rise and want to hedge against this possibility, the Fuel Bank is a system worth researching.
While the Fuel Bank can save you money if gas prices rise, and you are somewhat protected if gas prices fall, there are some issues to consider that may make it appear that you are saving money when in fact you may not be.
Besides the price you pay for the gas, you need to look at what the amount of money you prepay for the gas could earn if you leave it in a high interest online bank account or CD. For example, if you lock in rates at $3 a gallon and the average price for the year ends up being $3.10, you might think that you made a good choice and saved 10 cents a gallon throughout the year. Had you placed the money in a year long CD at 5%, however, you could have purchased the same gas and had money left over in the bank.
You also need to be aware that payment to the Fuel Bank is by credit card. If you don’t have the savings to pay off the credit card payment immediately, the interest charges will cost you quite a bit meaning it is much less likely that you'll come out ahead.
For more information, you can visit the
Fuel Bank website.
Fuel Bank - Lock In Your Gas Price
