Pre-Paid Gas Might Splash Back in Your Face

Getting gas in the future at today's prices might sound appealing, but it comes with a number of pitfalls.

With the ever-increasing price at the pumps, people continue to look for ways to reduce the cost of gas in any way that they can. This has lead to the recent launch of a company called MyGallons where you can buy gasoline at today's prices and fill up your vehicle with it months down the road -- even if gas prices have substantially increased.

The concept is pretty straightforward. Pay a yearly membership fee and you can purchase gasoline at today's prices. The number of gallons you purchase are loaded onto a card that functions like a debit card. This card can be used at any time to redeem the gas you purchased at approximately 95% of all gas stations in the U.S., even if the price of gas has increased from when you purchased it.

On the surface, it seems like a great idea. Who wouldn't want to pay today's prices if gas is going to cost more next week, month or year? The reality, however, is that most people are likely to do no better than break even -- and, in doing so, will carry a lot of risk.

Here are some of the issues that need to be considered before signing up:

Amount Purchased

The biggest problem is that in order for this to work in your favor, you need to pre-purchase a large amount of gas.

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