whats your oppinion?
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TECH Enthusiast
Joined: Oct 2006
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From: Raleigh
whats your oppinion? 
Iteresting article:
http://mashable.com/2008/07/02/mygal...er-gas-prices/
Sounds like another scam to me.
http://mashable.com/2008/07/02/mygal...er-gas-prices/
MyGallons.com is a new web site offering you the ability to pre-pay for gas at today’s prices, under the assumption that prices will continue to rise. For example, if you buy 20 gallons at today’s price of $4.10 on MyGallons and the price is up to $4.50 next time you fill up, using your MyGallons card would save you $8.
Sounds fantastic, right? Not so fast. MyGallons charges $29.95/year for a subscription and automatically re-fills your account when it dips below 15 gallons (though you can pay $39.95 to disable auto-refill). And, my fellow armchair economists, what happens if the price of gas actually comes down after the most unprecedented and uninterrupted run-up in history? Here’s what MyGallon’s FAQ says:
Q: What if prices go down?
A: Gas prices move up and down all the time. If prices drop you can wait for them to go back up in the days or weeks ahead.
In other words, should Saudi Arabia increase fuel production, the US open its strategic petroleum reserves, or a myriad of other potential political/economic events take place and the price of oil comes down, you are on the hook for $29.95 plus whatever gas you’ve already pre-paid. You can get a refund on the gas, but don’t expect yesterday’s prices, as MyGallon’s FAQ also explains:
Q: Can I get my money back for unused gallons?
A: Yes. If you want your money back for unused pre-purchased gallons, you can request a refund for the amount you paid for your unused gallons or your MyGallons price at the time of the request, whichever is less.
In my eyes, MyGallons is a well-designed marketing campaign designed to take advantage of the current fascination and fear over rising gas prices. Essentially, if you sign up, you are making a bet that gas prices will continue to go up, while MyGallons is protected from risk by both the subscription fees and a $1.95 processing fee every time you re-load your card. Unless you were to pre-pay for hundreds of gallons of gas (which would cost you thousands of dollars upfront) and the price per gallon shoots up dramatically, it’s difficult to see the math working out in your favor. After all, if the economics didn’t work out profitably for MyGallons, they wouldn’t be doing this, right?
Yes, rising gas prices suck. But if you think they are going to continue to rise, the best way to hedge your bets is to buy some stock in Exxon Mobile or BP – not hand over $29.95/year for another piece of plastic.
Sounds fantastic, right? Not so fast. MyGallons charges $29.95/year for a subscription and automatically re-fills your account when it dips below 15 gallons (though you can pay $39.95 to disable auto-refill). And, my fellow armchair economists, what happens if the price of gas actually comes down after the most unprecedented and uninterrupted run-up in history? Here’s what MyGallon’s FAQ says:
Q: What if prices go down?
A: Gas prices move up and down all the time. If prices drop you can wait for them to go back up in the days or weeks ahead.
In other words, should Saudi Arabia increase fuel production, the US open its strategic petroleum reserves, or a myriad of other potential political/economic events take place and the price of oil comes down, you are on the hook for $29.95 plus whatever gas you’ve already pre-paid. You can get a refund on the gas, but don’t expect yesterday’s prices, as MyGallon’s FAQ also explains:
Q: Can I get my money back for unused gallons?
A: Yes. If you want your money back for unused pre-purchased gallons, you can request a refund for the amount you paid for your unused gallons or your MyGallons price at the time of the request, whichever is less.
In my eyes, MyGallons is a well-designed marketing campaign designed to take advantage of the current fascination and fear over rising gas prices. Essentially, if you sign up, you are making a bet that gas prices will continue to go up, while MyGallons is protected from risk by both the subscription fees and a $1.95 processing fee every time you re-load your card. Unless you were to pre-pay for hundreds of gallons of gas (which would cost you thousands of dollars upfront) and the price per gallon shoots up dramatically, it’s difficult to see the math working out in your favor. After all, if the economics didn’t work out profitably for MyGallons, they wouldn’t be doing this, right?
Yes, rising gas prices suck. But if you think they are going to continue to rise, the best way to hedge your bets is to buy some stock in Exxon Mobile or BP – not hand over $29.95/year for another piece of plastic.
