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Thread: Fuel Banks

  1. #1
    Member Limo Padawan
    Join Date
    Jan 2003
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    Topeka, Kansas
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    97

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    Does anyone use Fuel Banks? Where you buy large quantity of fuel in advance at a set price and use as needed. Some of the companies with transportation fleets here have done just this and is getting gas below $2.00 a gallon from their "bank". If you use a fuel bank, what are your thoughts good and bad?

  2. #2
    Senior Member
    Join Date
    May 2002
    Location
    Lupton mich USA
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    2,128

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    You could buy 42,000 gallons at a time in the futures market. The only thing is you have to pick it up at New York Harbor and deliver it to your site. I don't think the < $2.00 a gallon is realistic as the before state tax and delivery price on the futures market was about $2.15 a gallon the last time I checked.
    David E. Merrill

  3. #3
    Senior Member
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    May 2002
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    Lupton mich USA
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    2,128

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    Actually it is down a little at $2.04 a galllon.
    David E. Merrill

  4. #4

    Default

    Fuel Banks are an interesting concept if you believe prices will continue to remain the same or go up. There is no need to buy 42,000 gallons You buy what you can budget for. Realize though that this is futures speculation and that if prices go down you will be fueling up at prices higher than the current pump prices.

    Here are two links with more info.

    FuelBank.com

    FirstFuelBank.com St Cloud, MN
    Tony Franzetti
    Marriton Limousine, Austin, TX
    Austin Limousine service, Austin airport service, austin bus charters
    http://www.marritonlimo.com

  5. #5
    Member Limo Padawan
    Join Date
    Jan 2003
    Location
    Topeka, Kansas
    Posts
    97

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    Good Internet sites TxLimoGuy. These folks here I understand bought their fuel a number of years ago. It is still in their "bank" at the very low price. They only use the "bank gas" when prices at the pump goes over the bank price, so they never pay higher prices until the bank runs out. I don't see the price of fuel ever going down at least not soon. This looks like good protection against higher prices.

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