Thread: Buy Gas at today's price - Get it in the future

Here's an article on buying gas at today's price and using it in the future to hopefully save money. What you're doing is betting that gas prices will continue to rise. If gas prices go down, too bad!
http://biz.yahoo.com/usnews/080702/02_steeling_yourself_against_rising_gas_prices.htm l?.v=1

Why would you think otherwise?
Every year gas prices have risen and risen.
The amount of Oil left in the world is falling, its getting harder to get, and many countries economies are rising, therfore increasing costs to drill/manufacture there.
There is absolutely no reason to believe that gas prices will fall, unless suddenly someone comes up with a brilliant idea for a renewable fuel source.
However, I am no scientist, but wouldn't gas lose its potency after a while?
If you keep it for too long, it will react with the air/moisture, therefore becoming a different substance altogether.

"i_bleed_purple" wrote:

Why would you think otherwise?
Every year gas prices have risen and risen.
The amount of Oil left in the world is falling, its getting harder to get, and many countries economies are rising, therfore increasing costs to drill/manufacture there.
There is absolutely no reason to believe that gas prices will fall, unless suddenly someone comes up with a brilliant idea for a renewable fuel source.
However, I am no scientist, but wouldn't gas lose its potency after a while?
If you keep it for too long, it will react with the air/moisture, therefore becoming a different substance altogether.

You don't actually purchase the gas, you purchase the right to buy so many gallons in the future at today's price. Gas prices will probably fall after Labor Day as gas consumption usually falls then. It happens that they fall a bit every year at that time.

ok, i get it.
But still, prices will fall at labour day, but they will steadilly rise after then.
(i'll be going by canadian prices from now on because I am familiar with them)
This time last year, we were all outraged that gast hit $1.15 a litre.
Now its toppin $1.45 in some places.
Two years ago, gas tipped the dollar mark.
3 years ago, 80 cents, 4 years ago, 65.
In 4 years, the price of gas has increased at an alarming rate.
10 years ago, gas costs (probably, I never really paid attention then) about 50 cents a litre.
5 years ago, gas cost 65 cents a litre.
an increase of 30% over 5 years.
over 4 years, gas prices have more than doubled, so you can do the math and see for yourself that gas prices have suddenly skyrocketed over the past few years.
Essentially, thats like buying stock in gas prices.
You can't lose.

i_bleed_purple:
Are you aware that the US gets most of it's imported oil from Canada. Nearly 20%. And we sell gas for less than Canada. Why? Taxes or devalued Canadian dollar?

"COJOMAY" wrote:

"i_bleed_purple" wrote:

Why would you think otherwise?
Every year gas prices have risen and risen.
The amount of Oil left in the world is falling, its getting harder to get, and many countries economies are rising, therfore increasing costs to drill/manufacture there.
There is absolutely no reason to believe that gas prices will fall, unless suddenly someone comes up with a brilliant idea for a renewable fuel source.
However, I am no scientist, but wouldn't gas lose its potency after a while?
If you keep it for too long, it will react with the air/moisture, therefore becoming a different substance altogether.

You don't actually purchase the gas, you purchase the right to buy so many gallons in the future at today's price. Gas prices will probably fall after Labor Day as gas consumption usually falls then. It happens that they fall a bit every year at that time.

Only till the first frost hits in the late fall/early winter Cojo,
then we all know what happens,
they rocket up again........ :

Nothing we can do about it so just pay it