Kroger has recognized over the past few months that its customers are becoming more price-conscious amid economic pressures. To retain shoppers, the grocery chain has recently cut in-store prices and is now helping customers save on gas as fuel prices climb nationwide.
The price of gas has been on the rise over the past few weeks after the U.S. and Israel’s attack on Iran on Feb. 28. This attack resulted in Iran mostly closing the Strait of Hormuz, a waterway between the Persian Gulf and the Gulf of Oman, which handles about one-fifth of the world’s crude oil shipments.
This closure disrupted roughly 20% of global oil supplies, as well as liquefied natural gas volumes. A week after the attack, crude oil prices climbed from around $70 a barrel to almost $120, then dropped to about $100 and have remained close to that figure for several days, according to Trading Economics data.
Currently, gas prices across the U.S. are averaging about $3.98 per gallon, according to recent data from the American Automobile Association (AAA). A month ago, the average gas price was $2.98 per gallon.
Patrick De Haan, the head of petroleum analysis at GasBuddy, wrote in a March 14 post on social media platform X that gas prices “aren’t likely to drop back fully down to pre-war prices until later this year, since seasonal factors will prevent a full drop back down.”
He also said in another X post on March 27 that while gas stations nationwide are trying to keep prices below $4 a gallon, that could soon change once costs are too much to bear.
“National average price of gasoline holding at $3.991/gal- there’s a psychological wall at $4,” wrote Haan. “Stations will sacrifice some margin to stay at $3.99 because they know how consumers react- but once costs force their hand, prices jump above it- and that could happen soon.”
As gas prices rise, Kroger is running two savings events to help customers spend less money on fuel.
For years, Kroger has offered customers Fuel Points, which is its loyalty program that rewards discounts at the gas pump. Shoppers usually earn 1 Fuel Point for every $1 spent on groceries, whether online or in-store.
They also usually earn Fuel Points on select gift card purchases, qualifying prescriptions and 90-day refills filled at Kroger stores.
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Customers get $0.10 off per gallon for every 100 points; they can earn a maximum of $1 off per gallon.
However, through Kroger’s 4X Fuel Points Spring Weekend events, which will take place between March 27-29 and April 3-5, shoppers can earn four times the usual amount of Fuel Points on groceries and eligible purchases with a digital or in-store-accessible coupon, according to a recent press release.
