Online service helps consumers buy gas in bulk - WNEM TV 5

Online service helps consumers buy gas in bulk

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SAGINAW, MI (WNEM) -

Desmond Bibbs owns a limo bus service in Saginaw. As you might imagine, it's not cheap to gas up.

“By far, gas is the most costly expense I have," Bibbs said.

Bibbs said sometimes he takes reservations a month in advance, even a year.

"Gas affects a lot of the runs, the business decisions we make," Bibbs said.

His charges are based on the price at the pump today. If the price at the pump goes up after he sets his price, his profits go up in smoke.

“It costs about $200 to fill this thing up," Bibbs said.

Bibbs, always looking for ways to keep costs down, was thrilled to hear about a company that promises you can pay the price today any time in the future.

“This would help in so many ways," Bibbs said.

The company is called MyGallons.com.

Image gas drops to $1.50 per gallon. If you buy 100 gallons through MyGallons.com, that’s $150.

If gas jumps back up to $2.50 per gallon or even $3 per gallon, you can redeem your prepaid gas contract at your prepaid price of only $1.50 per gallon.

Similar to a futures contract on Wall Street, no storage is required.

Individuals using the site could also make money. In the same scenario, if gas prices go up, you could sell your prepaid contract for the higher price.

The company charges 6 cents per gallon to cash in and a fee of 6 percent when you purchase.

As long as you pay a membership fee of $30 per year, you can have control of your prepaid contract as long as you like.

Bibbs said the added costs are low, considering how much it would subtract from his bottom line.

"This is something that I am going to look into right away," Bibbs said.

A service like this is helpful for consumers in Michigan, with gas prices low and lawmakers raising the gas tax.

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