In a simple version of hedging, First Fuel lets buyers prepay for their future gas, locking it in at today's prices. If you think gas prices are going up, it's a smart move. If prices fall, you just buy at the lower price, and wait for prices to rise back up to your purchase price or beyond.
CNN reports some First Fuel customers that are still withdrawing from a fuel reserve they purchased for as little as 99 cents a gallon! First Fuel makes it work by storing a lot of gas at their stations to handle near-term demand, and by buying gasoline futures contracts for long-term needs. Check out First Fuel Bank's website for the full scoop.
No storage charges, no service charges, and only a $1 membership fee - sounds like a good deal if you live in First Fuel Bank's Minnesota retail region.
[Source: CNN.com Thanks for the tips, Kamil and James!]