Saturday, February 9, 2013

Want to save on gas? Buy milk

Want to save on gas? Buy milk


How to make the most of supermarket gasoline discounts


February 08, 2013|Kelli B. Grant



As gas prices rise, retooled supermarket programs offering savings at the pump may seem more appealing. But consumers could find that the discounts don’t offer much added mileage.
Supermarkets and convenience stores are offering shoppers bigger discounts on gasoline, in an effort to draw in business. On Feb. 13, Giant Eagle will begin offering loyalty-club members a discount of 3 cents per gallon at Giant Eagle and GetGo (a Giant Eagle brand) stations. Members already earn discounts of 10 cents per gallon on one fill-up for every $50 in grocery spending. In a new Safeway and Exxon Mobil partnership, Safeway shoppers in Virginia, Delaware, Maryland, Pennsylvania and Washington, D.C. can earn up to $1 off per gallon for a single fill-up at participating stations, based on their grocery spending in a given month. Cumberland Farms, a chain of convenience stores and gas stations in 11 states, also launched a payment app last month that offers customers discounts of 5 to 10 cents per gallon. “It’s our own form of being a mobile wallet,” says Kate Ngo, senior manager of brand strategy of Cumberland Farms.
The discounts come as gas prices have crept up. According to AAA, the national average is currently $3.56 per gallon, up from $3.30 a month ago. It’s the start of the seasonal spring price increase, as refineries slow production for maintenance and to switch over to summer-blend gasoline, says Michael Green, a spokesman for AAA. “Gas prices always rise this time of year,” he says. Assuming the economy holds steady, prices should fall again by early summer, and then rise again in September. If the economy picks up, however, increased demand for gasoline and other petroleum products could keep prices on an upswing into the summer, Green says.


Even at current prices, if the grocery programs happen to be at a store a shopper already frequents, the savings could be valuable. In 2011, the average household spent $3,838 per year, or $320 per month, on “food at home,” according to the Bureau of Labor Statistics. Depending on the program, that’s enough to trigger a 30-cent-per-gallon discount on one fuel-up in Winn-Dixie’s program (which offers 5 cents off for every $50 spent each month), or 10 cents off per gallon for three fill-ups via Safeway. Think of the savings as something extra, though, and not a reason to switch supermarkets, says Teri Gault, founder of TheGroceryGame.com. “You save a whole lot more on groceries than what the gas rewards come out to, if you’re taking advantage of sales,” she says. Points often expire at the end of the month if you haven’t reached the reward threshold, making the programs a wash for shoppers who divide their trips among several chains.

No comments:

Post a Comment