Hedging gasoline

[zpiloto]

Does anyone in Minnesota belong to this. I've had this idea for awhile but it not an option here. I think it would be something that would work but timing is everything.

[Sludgy]

We buy a lot of natural gas here. I think hedging gives price STABILITY, but not the best overall price.

[omgwtfbyobbq]

Depends how long you hedge and what the price is/does. Iirc, as long as the fuel lasts for a few years, simply hedging in the winter's a good bet, since prices are generally higher in the summer. I recall reading something about an older gentleman who had a 500 or 1000 gallon storage tank and bought when prices were ~$1.50-1.80 a gallon. Sufficed to say, gas went to $3 a gallon within a year and he still hasn't burned through all of it... Hedging all the way to the bank in that case.

[Bill in Houston]

Definitely a fun concept, and a great option for people who find themselves complaining about the rise and fall of gas prices. I think that more of the nationwide discounters will start doing this in the next couple of years.

[zpiloto]

It's huge for the airlines(large volumes). That's one of the reason Southwest Airlines was making profits while other carriers were hurting. They had more free cash to buy larger quanities. If I could figure a way to keep it freash I buy a 500 gallon tank. That would last the family a year. Summer is right a round the coner you know it will jump 10-15 cents at least.

[zpiloto]

Originally Posted by omgwtfbyobbq

Depends how long you hedge and what the price is/does. Iirc, as long as the fuel lasts for a few years, simply hedging in the winter's a good bet, since prices are generally higher in the summer. I recall reading something about an older gentleman who had a 500 or 1000 gallon storage tank and bought when prices were ~$1.50-1.80 a gallon. Sufficed to say, gas went to $3 a gallon within a year and he still hasn't burned through all of it... Hedging all the way to the bank in that case.

What does Iirc mean? I seen that in several of your posts.

[omgwtfbyobbq]

Depends who you ask. Even though it's pretty much the same thing either way.

[ELF]

Originally Posted by zpiloto

What does Iirc mean? I seen that in several of your posts.

I never knew what that meant either



I live to far from any of those gas stations for me to join. But I would love it if they had something closer to me. I like to buy in bulk, or stock up on things that are on sale so I would like having the option to buy gas in advance.

[SVOboy]

If I recall correctly, IIRC is an acronym for some phrase...

[red91sit]

I-f
I-
R-ecall/Read/Remember
C-orrectly

IIRC