I wonder if this has already occurred to anyone. For those of us planning Summer road trips, fuel cost will be a major factor to consider in making any plans.
I know the airlines, municipalities and other large entities hedge against higher costs in the future by purchasing options or contracts for fuel at a certain price very far ahead of time. Back when gas was $4.00 per gallon here in Chicago I read a report that the CTA had purchased their fuel for $2.65 per gallon so the prices would not affect fare costs in the near future. Southwest Airlines also had a deal much like that - they purchased their fuel years ahead of time - or rather options on the fuel at a certain price - much lower than the market price at the time.
I hoping that someone smarter than I am can explain if there is a method for individuals to do the same. I know anyone with an account can trade on the options/futures markets. I wonder if I went out and bought $100 worth of options for $2.00 per gallon gasoline option/futures and gas was $5.00 per gallon next summer, I could sell the option/future at a premium and make up the difference in what the fuel will cost on the trip, therefore protecting myself.
Does this theory have any legs?
I don't think this would be a great idea for everyone, but for those already active in the market might find it useful....
Just a thought.