Friday, March 31, 2006

The Great Kroger Gasoline Price Conspiracy

This post is partially humor, partially conspiracy theory. Comments are welcome, flaming is not.

Like a lot of people in this part of the world, my wife and I shop (at least partially) at Kroger. We have our little Kroger card to get our discount on groceries and .03 a gallon savings on gas. Now once you have built up $100 in grocery purchases, you can purchase up to 35 gallons of gas at .10 off per gallon. Now if Kroger pricing is within 2-5 cents a gallon of what other places nearby sell gas for, then this is a deal. Kroger wants you business and will reward you for it.

Since my wife and I do not shop Kroger for main grocery purchases, it takes us a bigger part of the month to build up to $100 in purchases. So near the end of the month, I stop by Kroger on my way to or from work, scan my Kroger card, insert my debit card, and fill up the tank of my baby. The sight of the price dropping .10 a gallon is refreshing...or is it? Hey, wasn't gas .7-.10 a gallon LESS last week? While I know the price of gas is in constant flux, it seems that gas tends to go up at the end of the month at Kroger and drop a week or two later.

I have often noticed the price of Kroger gasoline goes up .05-.10 cents a gallon near the end of the month, NEGATING my "discount" and coming back down the first couple of weeks in the new month. After looking at this I am wondering, "Why shop there? Why don't I just go to Sam's club like my wife does?" Two simple reasons. One, Sam's is out of the way of my normal commute. I can take that way to and from work, but I face heavier traffic. Two, She only beats me my .01-.02 cents per gallon on the best days (unless it is at the end of the month).

I drive by 2 Krogers almost every day. The one near my house is usually .05 more a gallon than the one that is at the halfway point in my commute to work. They both go up at about the same amount on the same day, but usually at different times.

Kroger is also much more convenient and quicker, as well as easier to get in and out of. I usually do OK on pricing but every now and then, I beat them to the price change and get my gas for .10 off a gallon. When everyone in this area was paying $2.15+ a gallon, I was able to get it for $1.98 a gallon (with my .10 off and good timing). That helps since I have a 22 gallon tank in my 1999 Dodge Dakota and it is not exactly easy on gas.

Is there a conspiracy? Maybe, maybe not. Test this. If you shop at Kroger, start watching their gas prices and see if they tend to go up towards the end of the month while dropping at the beginning of each new month. I know that gasoline prices will always be in flux, but this phenomenon has me believing that there is something going on.

Not that I really care, but it does amaze me that the only two conspiracies I believe in are both related to the oil and gas industry. Look at the auto industry and the fuel efficiency of vehicles. Am I really to believe that after 100+ years we still cannot make a fuel efficient, affordable, durable vehicle? Why must we be slaves to oil?

Coincidence? You decide :)

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