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Retailers Respond to High Gas Prices with Discounts, Promotions

Kroger launches nationwide fuel discount program

By Joe Benton
ConsumerAffairs.com

May 23, 2008

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Retailers are responding to record-high gas prices with a flurry if discounts, rebates and rewards.

Among the larger programs is one sponsored by Kroger, which is offering fuel discounts earned by shopping at a Kroger-owned store.

"We are excited to make it easy for our customers to earn and redeem fuel discounts throughout our family of stores as the summer travel season begins," Rodney McMullen, vice chairman of the Kroger Co., said. For every $100 spent in the store, Kroger rewards customers with a minimum of 10 cents off per gallon of gas.

The fuel discount programs are available and transferable at Kroger stores nationwide under the following banners: Kroger, Baker's, City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Gerbes, Hilander, Jay C, King Soopers, Owen's, Pay Less, QFC, Ralphs, Scott's, and Smith's stores.

Customers using Kroger's 1-2-3 REWARDS MasterCard can receive discounts up to 15 cents off per gallon of gas in participating markets.

Wawa

Wawa, a chain of convenience stores on the East Coast, is trying a fuel discount program at nine stores, offering customers a discount if they pay for gas with cash rather than credit or debit cards.

The discounts are a way to skirt the interchange fees charged by credit card companies, though Wawa said the savings from the new program are ultimately being passed along to consumers. Depending on the store’s location, a cash-paying customer can receive a discount of 1 to 5 cents per gallon.

The nine stores offering the discount are in Pennsylvania, Maryland and New Jersey. Steve Gamble, Wawa’s gas services manager, said the Wawa Visa card offers more benefits than the cash discount. The Wawa card offers 10% savings on Wawa purchases for the first 90 days and 4% after that.

Lottery

In Everett and Kirkland, Washington, drivers lined up for more than an hour yesterday to get $40 in free gas at a pair of gas stations. It was part of a phone company promotion.

Starting at 6 a.m. today, the Washington State Lottery is offering up ten gallons of "free" gas to the first 200 customers at select Safeway gas stations in Auburn, Spokane and Kennewick. The lottery says it's free, but you have to buy a $10 Mega Millions quick pick ticket to take advantage.

Stop & Shop

In Massachusetts, onetime gubernatorial candidate Christy Mihos, who owns the Christy’s grocery and gas-station chain on Cape Cod, is teaming with Stop & Shop to offer gas discounts to customers.

The Christy’s deal provides those who buy $50 or more of groceries at Stop & Shop a 20-cent per gallon discount on the purchase of gasoline at one of the 12 Christy’s stores on the Cape.

Also in the Bay State, Sovereign Bank recently finished up a winter marketing campaign that promised residential customers $100 gas cards if they opened new checking accounts with direct deposits.

GasBuddy

There are any number of similar promotions around the country, and prices at local stations may vary widely from the much-quoted statewide averages.

One way to sniff out the best price in your area is through GasBuddy.com, a Web site that features a "gas temperature map" that shows where the price of gas is highest and lowest.

Record prices

The nationwide average for a gallon of regular unleaded jumped 2.4 cents overnight as the country drives off into the long Memorial Day weekend.

The average price for regular in the U.S. is $3.831, an increase of 20 percent since the Memorial Day holiday last year. Mid-grade sells for $4.068 and premium costs $4.214. All are record prices.

Diesel sells for $4.59, also a record according to AAA.

One month ago regular gasoline sold for an average price of $3.511 and one year ago a gallon sold for $3.22.

Retail gasoline prices have now increased for 16 consecutive days setting 15 straight record prices.

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