New Company Allows Motorists to Secure Gas Price

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New Company Allows Motorists to Secure Gas Price

07/02/2008
NEW YORK -- With gas prices continuing to climb to record levels, one Florida-based company is looking out for motorists by offering a debit-like card that can be used to purchase gasoline in large volumes at a set price for future use.

While first introduced in January, MyGallons.com currently has 2,000 card carrying members who can fill up at over 95 percent of U.S. gas stations. Drivers pre-buy gasoline based on their zip code. MyGallons.com determines what that price is based using established providers of oil prices, reported Reuters.

"The price of gasoline was changing all the time. It seemed unpredictable," Steven Verona, founder and owner, told Reuters on Monday, when the average retail price for U.S. gasoline hit a new record of $4.10 a gallon. "It seemed there had to be a way to fix the price."

Verona conceded there is a downside, although one that is not forecasted in the near term. "There is that risk that the price could fall significantly," he told Reuters. "We don’t sell futures. It's pre-purchased gas," he told Reuters, adding, MyGallons.com uses a sophisticated hedging strategy to protect and meet obligations to members.