Buying gasoline futures business launches

On April 3, 2006 I wrote a longish post about a crazy idea I had: buying futures of gasoline.

The game of finding lower-priced gas is just a diversion from the pain of having to buy it in the first place. Maybe we kid ourselves that we make out ahead of the game. Maybe we do make out ahead by playing the game. I don’t think that matters, I haven’t seen a lot of gas companies go out of business.

At the same time all the gas companies are trying to find ways to keep customers loyal. They offer a commodity product and try to differentiate it with fancy tech-sounding additives. They have a schizophrenia. They want customers to pay at the pump for convenience, yet they also want customers to come into the store to stock up on chips and pop. But it’s a gas station. People pull in for gas or to use the bathroom. That’s about it. There doesn’t seem to be a lot of opportunity for building the business based on the site.

Now I have an idea for how gas stations can make their customers loyal: selling gas futures. What are gas futures? They’re essentially price speculation in the present on the future price of gas. It’s what commodity traders do all the time. Buy at one price and exercise at another.

Now someone has gone out and done it, Springwise reports. A company called MyGallons (ouch, I guess they’re doing business only in Imperial-measuring countries?) has launched that lets its members buy gas in bulk today at today’s prices, then decrement their account in the future. Sounds close to what I described, but not as interesting and not strategically with the same benefit for gas stations.

Also, the comments on the Springwise post make MyGallons’ reputation look a little smelly, so buyers beware.

So what do you think? Would you pay today to lock in a price for gas that you could redeem tomorrow?