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There's apparently a new site called MyGallons.com. The basic premise is you pay for gasoline now and then use it later. It works at most gas stations and you pay with a special debit card they send you. But, here are the catches I've found so far:


  1. Annual fee of $29.95 if it auto-refills for you, or $39.95 if you manually refill the card
  2. You pay for gas at the current MyGallons price, which is theoretically an average around your home address that is somehow computed. However, I haven't been able to find the current MyGallons price anywhere on their site.
  3. If you fill up away from your home address, the price you are charged adjusts based on average prices/taxes/fees at the other location (this also means you can't put in a home address in a state with low taxes and fill up for that price in a state with high taxes).
  4. There is a recharge fee of $1.95/transaction (at least with a credit card).
  5. Additional price adjustments are made based on whether you fill up an an expensive station or a cheap station (as compared to the MyGallons price. Also, premium will increase the price you are charged.


That being said, this might be a good opportunity especially for people without 5% cards (with 5% you'd have to wait at least several months for prices to go up to beat the 5% savings). Also, if gas prices go down, you lose money. Thus this would've been perfect at the beginning of the summer.

In any case, this is just a small summary of what I've found and I'm interested in what other people think and if there's any way to gain financially from this.

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virgil27 helped undead my account so leave him be!

Crazytree (Jul. 08, 2008 @ 6:34p) |

This outfit hit our local news here in DC, reported as a scam. Wow that went up quick. Good for FWalleteers for giving i... (more)

RedPlasticCup (Jul. 10, 2008 @ 2:21p) |

Well, now they're giving us our membership fees back. So... there's that. I don't know what the future of MyGallons is... (more)

ecb5649 (Jul. 16, 2008 @ 12:06a) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

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With all these fees & secret "computations" etc I bet you will only start seeing savings if gas prices increase by way over 10% between when you buy and when you use.
A better idea is to get rid of that SUV

That site seems like voodoo magic to me.

Ahhh, the days of Priceline. I must have saved so much on gasoline with them. The best part was that one of the gas stations had the wrong price per gallon in their system, but adjusted the number of gallons down so that the final price was correct (resulting in many more free gallons of gas since Priceline sold you XX gallons of gas).

As for this deal, I'm not really seeing any signifant benefit for the risk of them going under and taking my money with them.

Although it's not exactly the same it seems it would be a lot safer and easier to just buy sufficient amounts of an oil ETF to hedge your gasoline purchases. It would avoid the risks and fees inherent in this company. Too bad they don't yet have a gasoline ETF

I think I agree with everyone thus far. Which is why I haven't signed up. I am wondering however if someone has figured out a way to exploit the system.

yahoo link

Here's something about the service. You probably have to sign up to see if it's exploitable. And if it is, you'd probably want to keep it to yourself.
The math sounds good, but I must agree gatzdon about being afraid they might go under and taking all your prepurchased fuel with them. What would they do if gas went to $5/gallon or $6/gallon? Are they hedging correctly?

Anyone remember Cyberrebate.com?

I believe there are gasoline future to purchase on the futures exchanges.

Bycracky said: Although it's not exactly the same it seems it would be a lot safer and easier to just buy sufficient amounts of an oil ETF to hedge your gasoline purchases. It would avoid the risks and fees inherent in this company. Too bad they don't yet have a gasoline ETF

Annual fee of at least $29.95 plus $1.95 every time mygallons.com decides to pre-purchase gas for you. Then there are these unknown adjustments they can apply at any time. I want HARD numbers before I sign up. Call me crazy, but it seems like the only one profiting off this is mygallons.com.

tulsastorm said: Annual fee of at least $29.95 plus $1.95 every time mygallons.com decides to pre-purchase gas for you. Then there are these unknown adjustments they can apply at any time. I want HARD numbers before I sign up. Call me crazy, but it seems like the only one profiting off this is mygallons.com.That's crazy, a business that makes a profit? What is this, soviet russia?

gatzdon said: Ahhh, the days of Priceline. I must have saved so much on gasoline with them. The best part was that one of the gas stations had the wrong price per gallon in their system, but adjusted the number of gallons down so that the final price was correct (resulting in many more free gallons of gas since Priceline sold you XX gallons of gas).

As for this deal, I'm not really seeing any signifant benefit for the risk of them going under and taking my money with them.


Oh so do I miss those days. The Priceline gas thing was absolutely great. Not only did you get the nice discount upfront (I often got around a 10% discount), nothing stopped you from buying now and using later. It was a long time ago but I remember we were getting close to the seasonal high (likely it was summer/July 4). I bought maybe a ton of gas about 2 months earlier and kept each family member's car filled while saving significant booty.

The best part, w/o planning for it, I bought a second round like that at an Amoco that went out of business eventually. I used them for three weeks w/o them actually taking out my purchases from my Priceline account. Then Priceline jumped out of the business and they refunded me all that gas. I made out like a bandit with that.

Now had I only known about the 5% rewards cards back then, I would have been on cloud nine!

jayK said: That's crazy, a business that makes a profit? What is this, soviet russia?

I'm not opposed to a business being profitable, but as a consumer, I want to know what's in it for me.

Let's look at the numbers...If I pre-purchased 25 gallons of gas, the price of gas would have to go up $1.28 to break even with the initial fees...not counting any adjustments. If I pre-purchased 50 gallons, the price would have to go up $.64. Pre-purchase 100 gallons, prices would have to go up to $.32 to break even. When you reload with 25 gallons, gas prices would have to go up $.08 to break even. 50 gallons, $.04 . 100 gallons, $.02. I suppose you could save money on down the line if you speculate correctly that gas prices will continue to rise sharply, but if this company goes belly up like Priceline's gas card, there is no guarantee you will get your money/gallons back.

When I read the Yahoo! article, it sounded good, but the article doesn't mention the fees. Now it's got me thinking how much MyGallons paid Yahoo!/Reuters for the such a lavish article.

I'd better get this 14% deal since the company is much more reliable than an unknown website. Cheer Kroger's !!

jayK said: tulsastorm said: Annual fee of at least $29.95 plus $1.95 every time mygallons.com decides to pre-purchase gas for you. Then there are these unknown adjustments they can apply at any time. I want HARD numbers before I sign up. Call me crazy, but it seems like the only one profiting off this is mygallons.com.That's crazy, a business that makes a profit? What is this, soviet russia?
No, FWF. If a biz makes a profit on you, you're doing it wrong.

Bycracky said: Although it's not exactly the same it seems it would be a lot safer and easier to just buy sufficient amounts of an oil ETF to hedge your gasoline purchases. It would avoid the risks and fees inherent in this company. Too bad they don't yet have a gasoline ETF
You clearly haven't looked hard enough...

Yahoo Finance: UGA

Or go to gasbuddy.com to find the cheapest gas in your neighborhood.

bozo007 said: Or go to gasbuddy.com to find the cheapest gas in your neighborhood.

Or even cheaper, just borrow from your neighbors.

Q Do you really offer a 100% Money-Back Guarantee?
A Yes. If you do not save money on at least one redemption throughout the subscription year, we will refund 100% of your first year's membership fee.

get5dollarbonus said: Q Do you really offer a 100% Money-Back Guarantee?
A Yes. If you do not save money on at least one redemption throughout the subscription year, we will refund 100% of your first year's membership fee.
That's assuming the company is still around in a year.

One of two things will happen:
1. Gas prices go up, MyGallons goes bankrupt because they cannot afford current gas locked in at lower previous prices.
2. Gas prices go down, MyGallons rakes it in but you're screwed.

If gas prices go any higher, demand will tank as everyone will be driving less, buying hybrids and taking public transit. This company will go out of business soon enough, better bet investing in Sharper Image giftcards...

One big problem lies in the fine print:

MyGallons will adjust your account, in gallons, to reflect the higher priced fuel

They state:
FAQs said: This is no different than if you had to pay that station out of your pocket compared to going to another lower-priced station.

But I disagree. The whole reason for this is to protect yourself from rising gas prices. I know they need to protect themselves, but they should do that via the recurring fee, not when they deem it necessary without input or agreement from you.

StormShadow said: If gas prices go any higher, demand will tank as everyone will be driving less, buying hybrids and taking public transit. This company will go out of business soon enough, better bet investing in Sharper Image giftcards...

<snicker> People said that when gas was $2 a gallon, too.

I do agree that people will drive less though. Mass Transit isn't going to work for anyone its not already working for -- if you live near a mass transit that goes where you need to go you probably moved there on purpose to use it anyway.

Thats actually the reason that Hybrids are selling so well right now -- most Americans are NOT willing to drive less. If they can convince themselves that they are getting twice the fuel economy then they will drive twice as much. For the most part Americans are moving the same way Europe did years ago when their gas prices moved into the $5/gal range. When they buy a new vehicle its a more efficient/smaller one.

Whats funny is that one of the big issues for the US Automakers was the fleet average economy - its why they overpriced SUVs and had the econoboxs discounted so heavily. Now they are pricing UP the econo-cars and fireselling the SUVs. Its a win-win for the US companies since they were getting hammered by the CAFE Fleet standard. NHTSA They were pushing the econo-cars in the past to lower their average. (since SUVs were so popular)

hoxbox said: One of two things will happen:
1. Gas prices go up, MyGallons goes bankrupt because they cannot afford current gas locked in at lower previous prices.
2. Gas prices go down, MyGallons rakes it in but you're screwed.
And if gas prices stay the same, you're still screwed because you paid unnecessary fees, and you lost out on your 5% cash-back.


Q What if I really need gas now and the only station is charging really high prices?
A Most stations charge a fair and reasonable price for fuel. Some stations charge much more than the current average price in their area. We encourage you to avoid these high priced stations. If you must use one on occasion, MyGallons will adjust your account, in gallons, to reflect the higher priced fuel. This is no different than if you had to pay that station out of your pocket compared to going to another lower-priced station.


Then what's the point of this "service"? It seems to me that you're paying a hefty fee to get a very small discount. As tulsastorm said, the break even points are pretty high, plus their own FAQ shows numerous ways they can charge you more. I'll still with a 5% rewards credit card.

RedWolfe01 said: I do agree that people will drive less though. Mass Transit isn't going to work for anyone its not already working for -- if you live near a mass transit that goes where you need to go you probably moved there on purpose to use it anyway.

Thats actually the reason that Hybrids are selling so well right now -- most Americans are NOT willing to drive less.
Americans are already driving less: 1.4 billion miles less in April 08 vs. April 07.

http://edition.cnn.com/2008/US/06/18/driving.cutbacks/

Airjrdn said:
They state:
FAQs said: This is no different than if you had to pay that station out of your pocket compared to going to another lower-priced station.

But I disagree. The whole reason for this is to protect yourself from rising gas prices. I know they need to protect themselves, but they should do that via the recurring fee, not when they deem it necessary without input or agreement from you.


This is fine. What they mean by that statement is "If you fill up at the most expensive station in your area, we're not paying for it." If you notice, they'll also charge you less if you fill up at a cheap station. You buy gallons and then any adjustments are made relative to the current price. Which means its important to know what the current price is.

For example:
You buy 10 gallons at a price for $4.50
A month later, you decide to use it, and the price on MyGallons is now $5.00
If you go to the station that charges you $5.25, they charge you 1.1 gallons for every 1 gallon you pump
If you go to the station that charges you $4.75, they charge you 0.9 gallons for every 1 gallon you pump
(These numbers are completely made up, but the illustrate the point as far as I understand)

I would think hedging with the previously mentioned Gasoline ETF would be a much wiser choice.

Bycracky said: Although it's not exactly the same it seems it would be a lot safer and easier to just buy sufficient amounts of an oil ETF to hedge your gasoline purchases. It would avoid the risks and fees inherent in this company. Too bad they don't yet have a gasoline ETF

They do have a Gas ETF, I know some people that has invested in it, here is some info:
http://www.etftrends.com/2008/02/first-gas-etf-l.html

~K

Looks like MyGallons.com got its free ad in here. Fee kills the deal for me.

this dumb -
What about when our congress forces Saudi to reduce oil prices and congress forces oil co execs to reduce prices and bush opens up coastline

Gas prices will go down.



HAHAHAHHAHAHAHHAHAHAHA


UP UP and AWAY.

Peak oil is HERE

MyGallons.com said: Q Am I pre-purchasing the gas with tax?
A No. You are pre-purchasing regular unleaded gasoline and paying for estimated taxes based on the tax rates in your home location at the time of your pre-purchase. MyGallons uses this method since we have no control over taxes. If taxes go up or down, your account will be adjusted accordingly.
Specious justification emphasis is mine. They do have control over other price factors?

Here's how I buy gasoline futures.

tulsastorm said: jayK said: That's crazy, a business that makes a profit? What is this, soviet russia?

I'm not opposed to a business being profitable, but as a consumer, I want to know what's in it for me.

Let's look at the numbers...If I pre-purchased 25 gallons of gas, the price of gas would have to go up $1.28 to break even with the initial fees...not counting any adjustments. If I pre-purchased 50 gallons, the price would have to go up $.64. Pre-purchase 100 gallons, prices would have to go up to $.32 to break even. When you reload with 25 gallons, gas prices would have to go up $.08 to break even. 50 gallons, $.04 . 100 gallons, $.02. I suppose you could save money on down the line if you speculate correctly that gas prices will continue to rise sharply, but if this company goes belly up like Priceline's gas card, there is no guarantee you will get your money/gallons back.

When I read the Yahoo! article, it sounded good, but the article doesn't mention the fees. Now it's got me thinking how much MyGallons paid Yahoo!/Reuters for the such a lavish article.



Your math is correct, but you aren't thinking about how someone would realistically use this card. I use about 60 gallons of gas a month (15 per week). If I use this card to pre-purchase all of my gas at the beginning of the month, the price would only have to increase over the course of the month an average of 4 cents per gallon to pay for that months portion of the annual fee.

Look at these charts:
http://www.gasbuddy.com/gb_retail_price_chart.aspx

In June the price of gas went from $4/g to $4.25/g. You would save money on a month like this. Many analysts have speculated that the price of gas will go past $5/g by this time next year. It seems to me like you will at least break even, I don't see the cost of gas going down.

Gas isn't quite expensive enough yet to go through this whole hassle.

hejustlaughs said: Gas isn't quite expensive enough yet to go through this whole hassle.Maybe you should lock the price in now, then?

dblevitan said: Airjrdn said:
They state:
FAQs said: This is no different than if you had to pay that station out of your pocket compared to going to another lower-priced station.

But I disagree. The whole reason for this is to protect yourself from rising gas prices. I know they need to protect themselves, but they should do that via the recurring fee, not when they deem it necessary without input or agreement from you.


This is fine. What they mean by that statement is "If you fill up at the most expensive station in your area, we're not paying for it." If you notice, they'll also charge you less if you fill up at a cheap station. You buy gallons and then any adjustments are made relative to the current price. Which means its important to know what the current price is.

For example:
You buy 10 gallons at a price for $4.50
A month later, you decide to use it, and the price on MyGallons is now $5.00
If you go to the station that charges you $5.25, they charge you 1.1 gallons for every 1 gallon you pump
If you go to the station that charges you $4.75, they charge you 0.9 gallons for every 1 gallon you pump
(These numbers are completely made up, but the illustrate the point as far as I understand)


That's how I understood it too, it's just that they are in total control of how they determine the average, and that's a little too out of my hands for me to go along w/it. Like most everyone else here, I don't think I'll be participating in this "hot deal".

Not for nothing, but there's another way to hedge your gas prices: buy the ETF named UGA: it tracks the average US gasoline price (not sure the relative tracking inaccuracy).

Say you plan to buy 500 gallons of gas this year at $4/gal current price = $2000.

So, assuming you have $2000 sitting around somewhere (which you'd need for your method as well), just buy UGA in yor brokerage account (many accounts give free trades as well depending on certain factors). If gas goes up $1, you're paying $5/gallon, but your $2k worth of UGA is worth $2500 now, netting you zero. Until you've bought 500 gallons of gas, you're totally hedged (other than asset-to-ETF tracking disparity).

Of course, if gas prices fall, you're boned by the same amount, but that's the risk for any hedging strategy. At the end of the day, you've agreed today that no matter what future prices are, you'll buy 500 gallons for $2000.

Sparhawk24 said: Not for nothing, but there's another way to hedge your gas prices: buy the ETF named UGA:

Works fine if you are expensing the gasoline in your business. Otherwise the gas you buy is a nondeductible expense and the gains on the hedge are taxable.

Skipping 37 Messages...
Well, now they're giving us our membership fees back. So... there's that. I don't know what the future of MyGallons is going to hold, but I'll probably bail on it.



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