Hedging gasoline
 

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.

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

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.

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.

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.

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

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

I never knew what that meant either :confused:



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.

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

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

IIRC

:)