Rising gas prices force Americans to make cuts to other parts of their budget.
“Over three-fifths (61%) of drivers said rising gas prices have moderately or significantly impacted their household’s ability to afford other expenses in the past month,” according to Numerator’s Consumers React to Rising Gas Prices.
People are also cutting back on discretionary spending.
“Seventy-three percent of drivers say that higher gas prices have resulted in them cutting spending from other categories, including dining out/takeout (43%), travel (30%), and entertainment (29%). A quarter of drivers also cut spending on everyday items like groceries (28%) and household goods (24%),” the study showed.
In addition, Americans are also changing their gas-buying habits. “Ninety-three percent of drivers are trying to save money on gas, resorting to using gas station loyalty programs or apps,” Numerator’s April report showed.
The situation has driven more Costco customers to buy gas at the warehouse club, but one perk from 7-Eleven’s 7Rewards program could be an even better deal for customers.
7-Eleven has a price lock feature
7-Eleven’s 7Rewards program comes with a lot of gas rewards, but it’s more complicated to use than Costco’s gas pumps, which simply require a membership.
To join, you have to follow a few steps:
- Text SAVE to 711711 for 25¢ OFF/gal on your next 3 fills
- Sign up for7REWARDS and get 11¢ OFF/gal on your 7 fills
If you download the 7-Eleven app, you also unlock the convenience-store chain’s Price Lock feature. This gives shoppers protection from rising gas prices.
“Lock in a low fuel price in your area for 4 days in the 7-Eleven app. You’ll always get the best deal, even if prices drop,” the chain shared on its website.
It takes four steps to lock in the potential savings:
- Login to your 7-Eleven app and navigate to the “Fuel” page. Find the Price Lock banner and press the “Lock Price” button.
- Select your preferred fuel grade from the options displayed.
- Press the “Find Participating Stores” button to view where you can fill up.
- Pay at the pump using Mobile Pay in the 7-Eleven app.
So, if prices rise, you have already locked in a lower price, and if they drop, you get to pay the lower amount.
As gas prices rise quickly, this could allow a 7-Eleven customer to lock in a lower price than they might pay at Costco that day, which also requires a paid membership.
Gas prices back over $4 a gallon
The national average for a gallon of regular gasoline jumped 15 cents from last week to $4.09 as of July 23.
“Most states are now averaging $4 per gallon or higher. Rising crude oil prices are behind the spike at the pump. Volatility along the Strait of Hormuz and instability in the region have pushed crude oil prices into the $90 per barrel range and could continue driving up costs during the second half of summer,” according to AAA.
- July 23 national average: $4.091
- One week ago: $3.943
- One month ago: $3.926
- One year ago: $3.155
Rising prices have been met with climbing demand.
Gasoline demand increased last week from 8.84 million to 8.94 million, according to new data from the Energy Information Administration (EIA).
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Consumers are looking for cheap gas
Walmart CFO John Rainey noted a change in consumer behavior during his chain’s first-quarter earnings call.
“We have a large fuel business, and we see that in the most recent period, the number of gallons that customers fill up with when they come to our fuel stations fell below 10 for the first time since 2022. That’s an indication of stress,” he said.
Overall, however, Walmart and Sam’s Club have sold more gas.
“In the month of May, our gallons are up 12%. If you look across the industry, they’re down 5%,” Rainey added.
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Costco has also set gas records.
“All three four-week fiscal periods of the quarter set successive all-time company volume sales records, with the final 5 weeks of the quarter becoming our top five volume weeks ever,” Costco CEO Ron Vachris said during the warehouse club’s third-quarter earnings call.
CFO Gary Millerchip also shared some insight on changing member behavior.
“A lot of members are increasing their frequency. They’re visiting the gas station to top up in between would have normally been a gap between getting the tank to empty because of the concern about what might the gas price be tomorrow,” he said during the Q3 call.
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Costco may still have an edge
RTMNexus CEO Dominick Miserandino thinks Costco has one edge over all of its rivals offering gas promotions.
“Costco wins because its value proposition is completely frictionless: You show your card, and you get the lowest price in town immediately,” he told TheStreet.
7-Eleven’s Price Lock does make it possible for scenarios when it could sell gas cheaper than Costco, but that’s likely to be rare.
Americans, especially with gas back over $4 per gallon, will be aggressively looking for cheaper deals.
“It doesn’t matter whether gas prices are $4 or $2 per gallon, consumers still want to find the best price possible. Retailers are constantly fighting to attract price-sensitive drivers to their stores, especially given that 35% of gas customers say that they also go inside the store after fueling,” Jeff Lenard, a longtime National Association of Convenience Stores (NACS) executive, said in a press release.
Costco did report seeing a change in how its own members acted based on where gas prices are now.
“The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter,” Vachris added.
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