Prepay for car fuel, similar to Airlines?

Question

I know that Airlines prepay for their fuel using a contract and if fuel price goes up they still get the same price.

It would be cool if private individuals could sign up for a fixed price of fuel via a Group Purchasing Organization (GPO). So that regardless of what the gas price goes up to in the future people who prepaid for certain amount of gallons could apply for refund.

I think this would be a great way to deter speculators. Is it possible to create this kind of GPO? Is it already exists for private individuals?

So for example I normally use about 120Gal per month. and probably 400gal per quarter. In the last quarter gas price fluctuated between 3.10 and 3.50. That's 0.40 difference, which for me would be $50 savings per month if I had locked the price at 3.10. Which also means with GPO membership price of $20 per month I would still be saving $30. But I guess truckers would have the most benefits from such program.

Answer 1

The major trucking companies already do this to some degree.  They have fuel networks and fuel primarily at certain large chain truckstops, because they pre-purchase their estimated amount of fuel every quarter, at a discounted, locked-in rate.  

There are fuel networks that small trucking fleets can use, as well.  The National Association of Small Trucking Companies is one and it allows member fleets to get 10-12 cents per gallon savings at many truckstops nationwide.  

I think allowing regular consumers to pre-purchase fuel for cars, would be a pretty good idea, actually.  AAA or some such automotive group could offer it as part of their membership.  

Definitely a better idea- better savings and more of a "long term" solution than the gas tax holiday.  

Unlike some folks I don't think the price of oil is just going to spiral out of control.  Many analysts are already talking about an "oil bubble" thats going to pop just like the housing market did.  Investors are driving the price of oil through the roof- just like investors drove the housing market to levels the average person couldn't afford.  

At the rate the price is rising, oil will reach a point where the economy cannot sustain the price, and investors will begin to sell their shares before prices plummet, which will drive prices down even lower.  Prices will never be what they were in 1995, but things will settle down.  

So maybe we're unlikely to see GPO's for private individuals- I don't think the prices will go that far....but even if they set something up like this now, even temporarily, I do think it'd be a cool idea.

Answer 2

that wont happen cos were the minor consumer airlines are a major consumer, in a day over 10 million liters of fuel is used worldwide.

they are given GPO because they have to have fuel on demand. where as minor consumers such as ourselves we won't get GPO well not for the next 5 to 10 years.

Answer 3

so pople dont steal gas