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Saturday, July 5, 2008

Buy gas at fixed rates and use it later

One new company, MyGallons.com, lets customers buy gallons ahead of time based on the current prices in their area--in theory, locking in a lower price--and then redeem those gallons at a later date, regardless of any price increases in the interim.

At MyGallons.com, the company makes those investments itself. Founder Steve Verona says that the company protects itself against future gas price increases through taking positions in the stock market. That way, customers can enjoy the simplicity of purchasing and redeeming gallons for an established amount and avoid experiencing market fluctuations themselves. Verona says the company doesn't plan to make money on gas, but rather from the annual membership fee (about $30), the interest float on the money that is paid before the gas is redeemed, and advertising on its website.

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