Buying gas in bulk for your vehicle could save you money. The concept of buying gasoline in bulk form has been around for awhile now and a few gas station chains have even put it into action. However, few people are aware of this method of buying gas for their vehicle and even less people understand how this method could save you a lot of money.
The concept of buying gas in bulk is relatively simple. You purchase a gas card, which is very similar to a gift card. You buy the gas card from a participating gas station. You can purchase as little as 100 gallons of gas on up to several thousand gallons of gas. You pay the current rate for the gas at the time you purchase the gas card. For example, if regular gas is $1.43 and you want to purchase 100 gallons of gas, you would purchase your gas card for $143. Your gas card would be valid at the gas station of purchase and any other gas station that is a part of the same chain of gas stations.
Now for the part of buying gas in bulk that few people understand. Since you bought the gas for $1.43 and gas prices fluctuate and could fall even lower, it would make no sense to be strapped into paying $1.43 if gas prices drop to $1.20. The truth is you don’t have to use your gas card to make a purchase. If gas falls below $1.43, you can buy the cheaper gas as other people would do. Simply purchase the gas as you would normally do, and don’t use your gas card to pay for it. You do not need to use your gas card to make a purchase.
Now on to the advantages of buying gas in bulk and using your gas card. Say gas prices skyrocket up to $4.20 again; you will be able to buy that gas on your gas card for only $1.43, a savings of close to $3 a gallon. If you bought a 100 gallon gas card, it might last long enough to get you through the brief times when gas reaches very high prices. 100 gallons at $1.43 cost you only $143, 100 gallons of gas at the $4.20 rate would cost you $420. You could realize a savings of $277 at that price.
The above example shows the extremes of gas prices, but you can save money anytime that gas prices increase over the rate at which you bought your gas card and you can decide when to use your gas card. For some, a gas card and buying gas in bulk would be a way to safeguard against skyrocketing gas prices, for other it would simply be a way to save a few bucks.
This theory is in practice in this country. First Fuel Banks gas stations offer a similar service. However, their location is limited to just one area of one state.
Buying gas in bulk is available to fleet accounts and farmers and so on, but it should be available to every driver on the road. This program can benefit both gas stations and consumers. A gas station can buy gas at $1.35 and sell it to you in bulk at $1.43 an 8 cent per gallon profit. They could invest this profit and earn interest and other yields. Giving a gas station chain significant upfront money to work with would allow them to invest a significant amount of money resulting in profit for the company. Their profits from investment could outweigh the loses when the consumer uses their gas card to purchase gas at $1.43 when the current rate may be as high as $2.00.
This program would certainly require some experimentation to get it right and it involves a risk by both the consumer and gas station. However, the rewards could outweigh the risks for the consumer and could insure a steadier price for gasoline. I believe that a program of buying gas in bulk would be beneficial to the consumer and the gas station and may be in use in the future. I would certainly be first in line.
