LUBBOCK, TX (KCBD) - AAA reports prices at the pump have jumped 51 days in a row, but did you know that an increase could actually put money back in your pocket. NewsChannel 11's Ann Wyatt Little explains. There are some programs that promise to lock in today's gas prices, but just like the stock market gasoline hedging is all about the risk than the reward. It's not a guarantee.
It's like playing the stock market, but with gas prices and companies like Petrofix, My Gallons and More Gallons promise to lock that three digit number down all in hopes of helping your budget. Here's how they work, you pay for gas at today's price completely up front. Club programs keep track of how much gas you have in your account. When prices are up, the idea is to go to the gas station and redeem what you purchased through the program when prices were lower.
But Hub City drivers have mixed reviews about the idea. "I guess I'd have to weigh the pros and cons. If it'd save me some money if prices go up then I guess I'd consider it," says driver Rachel Jones. "As far as it being risky, life is a risk so why not take it? Rather than have set price than it be $2.30 one day and jump to $2.60 the next," says Trey Hutchison.
"You're taking a chance that it's going to keep continuing to raise and being not a chance taker I'm going to stay the way I am," says Gary Thorton.
With Petrofix you pay about $ .30 per gallon to the company to lock your price in. For example if you pre-purchase 100 gallons of gas at $2.30 a gallon and the price goes up $.50 to $2.80 and stays that way for the duration of your purchase agreement then the company will pay you $150. You must subtract $90 for company fees and overall you save $60.
If prices drop at the pump, you aren't locked in under this company's terms, but you are still out 90 dollars you paid the company to be able to purchase the gas at a fixed price.
Like the stock market it is risky. Do your homework, each company has different strings attached to their respective agreements.
AAA spokesman Dan Rohnan says motorists are paying more because the price of crude oil has doubled in value since March.
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