I bought fuel at Safeway yesterday, using my Safeway Club Card at the pump, and didn't see the usual 3¢ per gallon discount.  When I went into the office to ask about it, I was told Safeway stopped giving Club Card discounts on motor fuels on August 31, 2012.  The attendant said they weren't giving any more "free discounts"; one must "earn" them by buying groceries.  So, we're expected to buy Safeway's overpriced merchandise to accumulate $200 worth of purchases so that we can save a buck or two on a fill-up once or twice a year?  We can buy the same groceries at Trader Joe's, Walmart and the local Farmer's Market for less every day and save the difference.  At first inspection, it doesn't add up.

Although Safeway tends to offer lower fuel prices than brands like Shell, Chevron and Arco, they're not necessarily the lowest in town.  At the moment, they're no longer competitive with the two independent stations down the street, who beat Safeway by 2¢ to 3¢. The price Safeway shows on their electronic signs at the curb is now the price they charge at the pump.  Although the pump still reads the Club Card, I'm not sure if gasoline purchases even count toward an eventual discount; it may merely be used to drop the price if one has enough "reward points" accumulated from grocery purchases.

This may have something to do with Safeway getting into bed with Chevron on a new "customer loyalty" program.  It's hard to be loyal when their prices are higher than the competition's for the same goods.

"Safeway's Club Card currently grants one reward point for each dollar spent on groceries. At Safeway gas stations, every 100 points earns participants 10 cents off per gallon in a single fillup, with 20 cents off per gallon with 200 points, 50 cents off per gallon with 500 points and $1 off per gallon with 1,000 points. Participants can use points in increments of 100, with a limited-time use up to 1,000 points for a single fillup, according to the company website."

It will be interesting to see if their scheme works.  I also noticed that business at the Safeway filling station was much lighter than usual — I had my choice of four or five pumps where I usually had to wait in line.