Debate, and discuss, just dont Bore me.
Or, Timing is Everything
Published on May 8, 2006 By Dr Guy In Current Events

Can anyone tell me what happened 2 days after the date listed in the title? Anyone?  Not you Chakgogka!  You already answered the last 5 questions.

Yes, Parated?  That is correct!  Iraq invaded Kuwait and the first Gulf war was at hand.  How is that a current event.  Let me wax nostalgic for a second.  On July 31st, 1990, I was given the option of pre-buying heating oil for the upcoming winter.  As I remember, I bought 500 gallons at a price of 69.9/gal.  The fuel oil was to be delivered when we needed it.

2 days later, the price skyrocketed, and did not come down until the following summer (and then to only 79.9).  Basically I saved about $400 that winter!  Not a bad chuck of change for a struggling father of 3 (soon to be 4).

Switch today.  There is a company in Minnesota that is doing the same pre-buy with gas!  First Fuel Banks allows you to buy as much gas as you want at the current price and then use it whenever you want!  Smart idea, especially for the people who bought hundreds of gallons at 99.9 per gallon!  The hero in the linked story just got it for $2.03, but with gas in that area going for about 90 cents more per gallon, he is making out like a bandit!  Best of all, there is no time limit on when you use the pre-buy! (Which means they are probably not selling a lot of pre-buys these days).  So if the price sinks below your buying price, you just buy from a regular gas station!

Timing is everything, as I said, and some people, like Art Altrichter, have a pretty sweet deal right about now.  It is no wonder that they idea has not caught on a lot as the company can (and probably does at times) take a bath.  But for them, they get your money way in advance, and might never have to pony up the pre-bought amount.  So a company that knows the oil business, like First Fuel Bank, can make a profit, and the customers are not going to complain!

I wish they would open up some places here in the old Dominion!  I would love to buy like that!


Comments
on May 09, 2006
Mate, I wish we could pre-buy our fuel like this. My wife has to drive 45 minutes one way to work and we are getting slugged about $1.35 a litre at the moment. Pre-buying would mean we wouldn't have to pay the expected even higher prices soon.
on May 09, 2006

Pre-buying would mean we wouldn't have to pay the expected even higher prices soon.

The beauty of this system, according to the article, is that you dont have a time limit on when you use it!  SO if the prices fall, no problem!  Just buy regular, and wait for them to go back up.  I hope this company does make it a going concern so that it spreads.

on May 09, 2006
The beauty of this system, according to the article, is that you dont have a time limit on when you use it! SO if the prices fall, no problem!


This is particularly what I like about the system. Of course, the problem here in Australia is our small market place, compared to the US. I don't know how financially viable it would be for a company to set up a similar system here.
on May 09, 2006

This is particularly what I like about the system. Of course, the problem here in Australia is our small market place, compared to the US. I don't know how financially viable it would be for a company to set up a similar system here.

I think Australia is bigger (both in size and population) than Minnesota.  And that is the only place they are so far.