How to save money at the gasoline pumps 24x7

Photo by tinotopia
How would you like to track gasoline prices on your own, and save money at the pump 24X7?

There's a way to determine how gasoline prices are trading in the futures markets so that you can predict what will be transpiring at the pumps. By making yourself more informed you can empower yourself and save alot of cash over your lifetime of commuting.





Why should you inconvenience yourself by tracking gasoline futures prices?
You should track these prices because it directly impacts you every time you fill up your car at the gas pump. The futures prices are the driving force behind the prices at the pump, so if you track these futures prices you'll be ahead of the game.

How can you track gasoline futures?
Websites like Bloomberg and CNN Money both have commodity futures pages where you are able to track these prices. The prices are delayed by about 30 minutes or so. On this same screen you'll be able to also view the prices of natural gas, crude oil, heating oil, and other commodities.
[http://www.bloomberg.com/markets/commodities/cfutures.html]-- [http://futures.tradingcharts.com/chart/RB]




How long does it take for these changes to happen at the pump?
--More often than not, if gasoline futures trade significantly lower one day on the market, you can expect prices at the pump to move lower within 10 days or so. Plan your purchases accordingly and you should be capable of saving some serious money at the pumps.


Why is the price of gasoline futures so different than the cost at the pump?
--For instance, the price of unleaded gasoline futures may be $2.50, but the price at the pump may be $3.40. The difference here is largely due to taxes. In general it can be expected that the average pump price should be somewhere between 70 and 90 cents above the futures market price. It takes a little time to show up at the pump. With due diligence and a little effort you can save thousands over the lifetime of your driving.


Tips
1. Gasoline futures can swing wildly throughout the day, so be aware of that.
2.Things such as hurricanes or major shutdowns of refineries can cause prices to skyrocket even without futures prices moving a lot.
3. Watch the gas futures on CNBC. In my town, the price of gas is usually $.70 more than the gasoline futures. Find out what the average price for gas above is futures in your town and add the figure to the futures to find out whether the next tick is up or down. When the next tick is up, fill your tank before it hits the street. If the next tick is down, you will know to wait in until they update the price at the pump. I have saved as much as $.10/gallon for a 20 gallon fill up by waiting a day or so, and sometimes go ahead and fill up even though I have half a tank, when I know the price is going up. [Jay@Lifehacker.com]