Gasoline Discount Programs in Lakewood, Colorado: A Cost-Saving Analysis

Abstract

Using gas price data and discount or cashback offers collected in Q4 of 2022, we examined which among four programs: wholesale club membership; grocery store fuel points; gas station loyalty programs; and third-party mobile applications, would likely provide the most savings to alternative demographics proxied by faculty, staff and students on campus, as well as the average American consumer. Though what’s best ultimately depends on personal circumstances, the key result from this research was that for the average American consumer who buys about 45 gallons of regular gas per month, Costco gas is best only if we disregard and exclude the membership fee in the cost of gas. Otherwise, Costco gas is best for premium gas only, and cedes supremacy to the third-party app Upside for regular gas. Upside is best for midgrade gas too. However, grocery fuel points supersede both Costco and Upside if the consumer spends about $300 or more and redeems the points for discounts at the pump. Ultimately, the study shows that consumers in both the high-spending and low-spending demographic may need to reassess their circumstances and reconsider their options to avoid potentially losing about $124 and saving $126 on gas a year.