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| Im Not Warren Buffett |
 Posted: Mon May 08, 2006 5:04 pm Post subject: |
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CFO
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| I read about that gas bank, and think its a no-lose proposition for the consumer... but I don't understand how the "gas bank" stays in business. |
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| vetelmo |
| Posted: Mon May 08, 2006 6:02 pm Post subject: |
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Moderator
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| Im just guessing but I bet they move gas around and take advantage of someone else, somehwere else. |
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| Dave Rathbun |
| Posted: Tue May 09, 2006 1:19 am Post subject: |
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CFO
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| The store something like a half million gallons of gas, and they use gas futures to lock in prices. |
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| MrT |
| Posted: Tue May 09, 2006 1:42 am Post subject: |
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Investing Sr. Associate
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I thought they did it by basically paying today's price for gasoline, then withdrawing it somewhere in the future for free. The catch is that you lock up your money now, and only potentially get a good return when gas prices go up. It's probably a good way to hedge your exposure to gasoline fluctuations. However, I would still rather put that money in the stock market.  |
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| Dave Rathbun |
| Posted: Tue May 09, 2006 1:57 am Post subject: |
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CFO
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$2.73 a Gallon? Not at First Fuel Banks
AP Article posted at Forbes.com
| Quote: | Each station has a 50,000-gallon tank for each grade of gasoline - regular, mid-grade and premium - compared with 6,000 to 8,000 gallons for each product at a typical convenience store, Feneis said.
That's enough capacity to handle short-and medium-term demand, he said. For people holding onto reserves for a year or longer, the company hedges its obligations by buying gasoline futures contracts on the New York Mercantile Exchange. |
There's more to the article, but that's the paragraph I was talking about earlier.
| Quote: | | The program is open to anyone who drives off the street. Customers buy whatever amount they want at the current price - the most ever purchased in advance was $400,000 worth - then swipe a card and key in a PIN number when they draw from their reserve. |
And if prices drop, you do not have to continue to use their service, you can simply purchase gas at regular prices. Say you lock in 5,000 gallons at $2.50 a gallon. If you can buy gas on the street for less than $2.50 you do, as there's no "storage fee" from the fuel bank. You simply leave your gas there. Then when prices go up, you can go back and start filling up with your cheaper gas.
Over time there is a "time value of money" that comes into play; the bank has your cash (and theoretically your gas) and you're not earning interest. The person that picked up $400,000 worth of gas is losing a decent bit of interest on the cash, but as long as gas prices are well above what they paid for it originally then they're getting a nice return on their money. |
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| SemirB |
| Posted: Wed Jul 19, 2006 10:56 am Post subject: GAss prices |
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Investing Sr. Associate
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| Well I also live in chicago, I dont drive. The cta is the best way to get around the city. |
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| Vester |
| Posted: Wed Jul 19, 2006 4:58 pm Post subject: |
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Investing Sr. Associate
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| Don't they have TV's on those buses now? |
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| SemirB |
| Posted: Wed Jul 19, 2006 5:11 pm Post subject: CTA |
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Investing Sr. Associate
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| No there are no TVs on CTA busses |
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| snapplekid13 |
| Posted: Wed Jul 19, 2006 9:27 pm Post subject: |
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Investing Manager
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Very True No Tv's on busses  But gas went down yesterday a BUNCH! WooHoo!! Gas is gonna be down for a while. |
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| thedominator |
| Posted: Sun Sep 24, 2006 6:33 am Post subject: |
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Investing Associate
Joined: 03 Aug 2005
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| gas prices are a little more affordable now here in canada |
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| rykarde |
| Posted: Tue Oct 24, 2006 4:26 am Post subject: |
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Investing Sr. Associate
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| $2.02 HERE .. about time!! |
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| Grimreaper |
| Posted: Tue Oct 24, 2006 4:32 am Post subject: |
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CFO
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Ya know...I only had 2 fokes thank me so fer for what I dunn wit gas prices...nobudy at this site. It's funny, da fokes who axe fo da most always appur-she-ate-it da least. I axed me buddy da plumtrician how low he me wanted to take em befo Christmas and he said..."I'm just happy fer what ya dunn so fer"...I said..."C'mon man, you desoive mo ova break" He told me $2/gal would be nice. Just cause he axed fo such an eeeeeasy numba I promused him a buck eighty!  Yuns fokes ova heeeya had betta stawt showin a tad mo gratitude...er I'll adjusto yer attitude!  |
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| zerolikedis |
| Posted: Tue Oct 24, 2006 5:34 am Post subject: |
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Investing Manager
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| frusnak |
| Posted: Tue Oct 24, 2006 6:30 am Post subject: |
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CFO
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 I was on a road trip last week and the lowest price for gasoline was $1.99 in Kentucky,
saw $2.75 in Chicago. (what a city, awesome!)
That's with unleaded gasoline futures at $1.50 give or take a couple of pennies. We are still being gouged by the gasoline futures traders especially compared to last years prices. Wait til the elections are over. |
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| Grimreaper |
| Posted: Tue Oct 24, 2006 6:50 am Post subject: |
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CFO
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| frusnak wrote: | I was on a road trip last week and the lowest price for gasoline was $1.99 in Kentucky,
saw $2.75 in Chicago. (what a city, awesome!)
That's with unleaded gasoline futures at $1.50 give or take a couple of pennies. We are still being gouged by the gasoline futures traders especially compared to last years prices. Wait til the elections are over. |
Spot is at like 1.51...last night the stashun I went to wassa chawgin 2.09 fer reggy. So here we have a spread bewixt spot n gas at da pump of about .60. Now afta Katrina da spread held $1 fer ova a week! So if anybudy tells ya da price o'gas ainna manipulated you kin tell em to see da Reaper....I'll set em straight. As fer as what fokes is payin in udder pawts o'da country I realize alot ovit depends on what you pay in taxes. But 2.75 in Chicano sounds like those fokes is bein gouged...big time! Of course certain pawts o'da country have a higher concentration of terminally clueless livin there. God help da fokes in Cali fer instunce. You kin hit dem idiots in da face wit a fryin pan and they won't feel it. I'm wreckin a very high % of goldbugs live in Cali.  |
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