Cash Discounts at Gas Stations
The Connecticut State Legislature passed legislation last week (my previous discussion is here) regarding gas station discounts for cash paying customers. Estimates have suggested that the difference between the price of gasoline for cash paying customers and credit/debit card customers may become as high as 10 cents per gallon. However, reports from gas stations in other states where there are different prices for cash and credit seem to generally be reporting a five cent per gallon difference.
The Connecticut legislators also halted an increase in the state gas tax which would have increased the price at the pump another 3 cents per gallon. Read more about the two measures in the Hartford Courant.
Connecticut isn’t alone in considering whether there should be a different price for cash and credit purchases at the pump. Some gas stations are also considering providing a discount for cash payments for gas in South Carolina, according to the Charlotte Observer. Reports are in from Michigan and Florida as well.
And New Jersey is considering legislation to require gas station owners to provide clear signage regarding whether they charge the same price for cash and credit customers, according to Newsday. The Connecticut Consumer Protection Department has issued a similar directive. At least one Idaho station has received complaints.
Connecticut isn’t the only one considering how to ease the price of gas by freeing gas station owners to give incentives to purchasers to use cash so that they avoid credit card fees - Massachusetts has had some preliminary discussions.
I suspect that the move will not be popular with credit card paying customers. South Carolina gas clerks report that customers often become upset when there are different prices at the gas pumps, according to the Post and Courier. And it’s a bit perplexing - at the same time that some gas station owners are providing consumers incentives to use cash, some airlines and travel companies are providing incentives to use credit cards.
This may get out of control - as at least one gas station in West Virginia has completely stopped accepting credit cards for gas.
