Gasoline Savings Too Good to Be True?

With gasoline prices continuing to rise and no relief in sight, entrepreneurs are flocking to open up gas saving web sites. The most recent addition to the web is the site www.mygallons.com. This website promises to save you a substantial amount of money by allowing you to pre purchase gasoline at today's prices and redeem them when gasoline prices soar again. Sound good, right? While it may be a great idea, only time will tell if it really is too good to be true.

The gasoline website promises:

The appeal to a website like www.mygallons.com is that you are locking in the gas prices of today, similar to a house loan. You purchase a yearly membership which ranges from $30-$40 a year and load a card with gasoline credits purchased at today's prices. Then you wait. When gasoline prices rise again, which we all believe they will, you use your prepaid card to get gasoline at the rate you bought it. Any unused pre paid gallons can be cashed in, so there is no reason to worry about loosing money. You can also use gasoline purchased for cars, motorcycles and even boats. If you do not save money on gasoline that year, you will be refunded 100% of the membership fee (great insurance in case gas prices drop suddenly).

The gasoline website realities:

So what's the catch? The main catch only happens if you go over your balance on your prepaid card. Unlike other prepaid cards, it still allows you to charge on it even when it is empty. The problem is that you are charged the current gasoline rate and a $15 overdraft fee. When you add a couple of overdrafts to your account and the $30 membership fee, your savings dwindle in a hurry. There is also a $1.95 reloading fee when using your credit card to purchase fuel. All of these "hidden costs" make saving substantial money on gasoline a lot more difficult to achieve.

Alternative gasoline savings:

If www.mygallons.com isn't right for you, that doesn't mean you have to accept paying top dollar per gallon. Wholesale companies like Costco and Sam's Club offer savings of up to .20 cents a gallon for members according to Nate Chapnick of www.edmunds.com. Just be careful not to only use Costco and Sam's club for gasoline only, or the price you pay in membership fees will offset any savings you might accrue. An easier alternative to gasoline membership clubs is to visit www.gasbuddy.com. Gas buddy is a volunteer website that compares gasoline prices around your city. Simply put in your zip code and Gas buddy will tell you where you can find the cheapest gas in your city. This saves you time and money so you can buy gas cheaply without the wear and tear of driving around.

Gasoline Savings Bottom Line:

If you plan to be diligent and check your prepaid balance regularly, then www.mygallons.com may be a great way to go. According to their gas savings calculator, if you drive 20,000 miles a year at 24mpg, you will save $588.92! That is a substantial savings if you can stay out of the hidden fee trap. If you need a more laid back approach to gasoline savings, try www.gasbuddy.com before you buy gasoline. You might be surprised to find out that your local Exxon station down the street is the most expensive place to buy gasoline in your city. Saving money on gasoline is not an easy task, but one that is getting easier every day. New websites are popping up daily, so keep your eyes on the Internet and you might be able to keep a little green in your wallet.