Sunday, April 1, 2007

Buy Gas Now

Sometimes, the most basic of purchases is like buying stocks and playing Wall Street. Consider for example gasoline. As anyone following current news would know, the Iran-British Navy scandal has been wrecking havoc for crude oil. While this sharp increase in price has begun to "show up at the pump", the high prices are not yet fully reflected in gasoline prices.

With the possibility of crude oil hitting $70 a barrel not far away (it's currently at $66), you can expect prices of $2.80-$3.00 a gallon. Consider the average now is around $2.60. One of the best ways to save yourself some money, and buy something you need, is to go out and buy some gas now, before it starts costing you more!

And why does this make sense? Because the Iran scandal is a temporary affect on prices, and a few weeks from now, oil would be back to its previous $60-$62 a barrel. In effect, by buying ahead of time, you can hedge your risk by buying now.

Consider the savings. On about 20 gallons x 20-40 cents, you're saving about $4.00-$8.00. It's a small amount, but considering how much gas already costs, it feels good to be one person at the gasoline pump with something to smile about.

1 comment:

andy said...

Thanks for the tip.