People are concerned about increasing gas prices but not the declines. If they're locked-in to a large purchase of gasoline, they can suffer if prices later fall.
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San Francisco, CA (PRWEB) February 2, 2009
Drivers can limit their fuel costs when prices rise without buying gasoline in bulk or buying prepaid gas cards. This approach could require an outlay of thousands of dollars to lock-in a year's worth of gasoline. Instead Petrofix.com's Fuel Cost Protection Plan compensates drivers if gas prices rise later for a small upfront fee. The plan also allows driver gas costs to drift lower if pump prices fall.
Petrofix managing partner Alex Pabon says, "People are concerned about increasing gas prices but not the declines. If they're locked-in to a large purchase of gasoline, they can suffer if prices later fall."
Pabon points to the recent swoons in gasoline prices, from $4 per gallon in July of 2008 to under $2 per gallon in recent weeks. Bulk purchase programs, such as prepaid gas cards, are sometimes seen as speculative because people have to guess whether it's a good time to buy large quantities of gasoline in order to lock-in their costs.
"The goal is really to limit or cap your fuel costs, to stay within a budget without worrying beyond that," says Pabon.
Offsetting fuel risks by purchasing fuel related instruments tends to be time-consuming and requires technical know-how. Pabon believes Petrofix.com will allow drivers and small businesses to simplify this process, stick to their budgets and achieve financial stability.
Customers can purchase a plan at the Petrofix.com site for 20 to 30 cents per gallon depending on the plan length and geography. Once they purchase a plan for some quantity of 'monthly gallons' they can continue to buy their gasoline as usual at any gas station they choose. Each month the plan pays the customer if the month's average price of gasoline is higher than at the start of the plan. The plan compensation or 'payouts' are based on average gas prices published by the Energy Information Administration (EIA), a government agency.
An example of a plan payout is as follows: you purchase a plan for your area with 100 monthly gallons, and gasoline prices next month average $1 higher than today's price. The plan would then pay you the difference of one hundred dollars for that month ($1 x 100 gallons). If prices averaged lower than today, your gasoline cost would be lower than before but there would be no plan payout for that month.
"The most important thing for our customers is they get a transparent and solid product to cap their fuel costs. The price source has integrity and can be verified by anyone, and we make it so that our customers receive their payouts automatically by check or credit card," explains Managing Partner Edward Lee.
Petrofix.com offers the Fuel Cost Protection Plans for all areas across the United States. Plan lengths range from 3 months to 24 months, and the customer can purchase coverage to suit their consumption. On the website, customers can use a calculator to decide for how much of their monthly fuel cost they want capped. Registered customers can view their payout history and their relevant gas prices.
Petrofix.com operates in San Francisco, California.
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