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Locking in gas prices!

Discussion in 'Pesticide & Herbicide Application' started by rcreech, Jul 3, 2008.

  1. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,056

    Have any of you seen ore heard of this?

    I am very interested if this is the real deal.

    This will help take the risk out of the fuel side.

    You can supposedly lock in your gas price with this card.

    If any of you have any experience with this or know anything about it please let me know.

  2. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,056


    Let me ask you this?

    Would you ever think about doing something like this?

    They say that gas could keep going up before it goes back down and possibly $6 by the end of the summer.

    If this truely works...one could save a ton of money!

    Any thoughts?

    I am going to call on Monday and if this isn't a scam of some sort (which I am very sure it isn't), and I think I am going to try it!


    Put $1000 on the card to lock in $4.00 gas.

    That is 250 gallons of gas.

    If gas goes up to $6.00, then you still are getting gas for $4.00 which is a savings of $2.00/gallon.

    Right there is a $500 savings right there.

    Is it just me...or does this sound like a great thing?
  3. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Posts: 694

    Just read an article on this and also going to check into it. I can see benefits with this, as long as prices keep going up which I think they will. Hope someone will chime in that is already nusing it.
  4. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,056

    I think one could only look at this card for REDUCING UPSIDE RISK!

    That is all it is.

    If the price goes down, then don't use it and just fill up on the ol Visa like always as you know the price will go back up eventually. If it goes up you are a hero!

    I hate the thought of not being able to control input costs, so this is a great way to do that.

    I just would like to protect myself on raising gas prices. I was going to put in a bigger tank...but in talking with Marathon they say gas can "go bad" after 30 days, so I don't really want to put in a 500 gallon tank!

    This is one way to "buy gas" and not have to store it or worry about it going bad.

    I too hope someone chimes in on this!

    If a guy can control fuel costs...that will be a BIG one!
  5. whoopassonthebluegrass

    whoopassonthebluegrass LawnSite Platinum Member
    Posts: 4,214

    I just can't see how a company can feasibly make money doing this. And if they can't make $$ they wouldn't do it. The rate of returns on any given stock will be FAAAAARRRR outstripped by the rate of increase on oil...

    I HOPE it's legit, but the realist in me says "not a chance"...
  6. teeca

    teeca LawnSite Bronze Member
    Posts: 1,202

    i too use a 1000gal gas tank supplyed by the co-op. so far it's been a pretty good deal and have beaten the street price by 3-7 cents/gal.. they supply the tank for free and i buy their gas.
  7. teeca

    teeca LawnSite Bronze Member
    Posts: 1,202

    Not to sure of the wording in section 3... In some circumstances, adjustments will be made to your account balance to reflect price differences caused by location, typically resulting from tax discrepancies between your home and redemption areas. For example, you will receive a credit in gallons if you fill up at a price significantly lower than the average price in your home area on the same day [or a debit in gallons if you fill up at a price significantly higher than the average price in your home area on the same day]; Be sure to log into your MyGallons account regularly to check your balance and be certain that you have enough fuel available to fill your vehicle. :confused:
  8. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,056

    I agree! I am sure they lock in a price somehow so there is no risk on their end.

    But this has been on the news and I think where they would have to make money (on top of the monthly fees). I read that they invest the money in some kind of an acct like a money market or some other type of acct. So they are probably just operating on the money on the acct until it is used up.

    If it is legit....then it would be a sweet deal!
  9. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,056

    I think what this is saying is if you are close to home then your price would be ok...but if you travel and the gas is MUCH HIGHER then it may take a little more as the avg price on the card is from around where you live.

    I will make sure on that when I call.

    Thanks Teeca!
  10. mikesturf

    mikesturf LawnSite Senior Member
    Posts: 795

    What if $4.15 is the peak price and in a few months its $3.40 gallon? Usually when everyone is convinced that the prices are going to $6.00, this is when the market tops-there is no one else to buy-greater fool theory. Watch TV, they are all saying that crude oil will hit $150, $175, $200... NO ONE is saying prices could go lower. Look at tech stocks in 2000-2003.

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