Now that gas prices in Houston, TX are over $3.50 a gallon, I’ve come to the realization that the “cheap” gas stations are actually a worse deal for me.
Kroger Gas Stations
I usually spend at least $100-$200 a month at Kroger for groceries. Since they give you a tank of gas at 10 cents off per gallon anytime you hit $100 in grocery costs using your Kroger card, I usually get one or two car fill-ups at their gas stations at 10 cents off per gallon. Now that gas is so expensive, I’m skipping the Kroger station.
PenFed Visa Gas Rewards
Remember when I mentioned that my husband and I switched over to using the PenFed Visa? It gives us 5% cash back at normal gas stations, 2% cash back at grocery stores, and 1% cash back on everything else.
Well, when gas was around $2.50, 5% cash back meant that I was getting back about 12 cents a gallon I still used the Kroger’s gas station when I had earned the 10 cents off rewards and then received the additional 1% cash back by using my PenFed Visa.
Gas at Shell with Kroger Rewards and PenFed
Now it just makes more sense to skip the Kroger gas station altogether. When I do earn my 10 cents off rewards, I go to a Shell gas station instead. Then I get the 10 cents off per gallon AND the 5% cash back from PenFed. That usually means I’m saving 27 cents per gallon or more – that’s about $3 a tank on my little Chevy Aveo.
If I don’t have Kroger gas rewards, I go to the cheapest stand-alone gas station I can find, which is usually the Exxon near my Kroger. Then I just get the 5% cash back, which is about 17 cents per gallon or more anyway now.
Now I Buy Gas Elsewhere
In short, more expensive gas has actually made the slightly cheaper discount gas station a worse deal for my husband and me. We more than make up for the extra 2-3 cents per gallon using our PenFed Visa’s 5% cash back. And I really rack up the savings now that Kroger and Shell have teamed up.
I know I shouldn’t be too happy with this newfound “savings” since it means I am ultimately spending way more than I’d like to on gas, but I’ll take whatever positive news I can get out of all of this. 
Have you made any strange changes due to the new price increases on gas and other goods?
I think when it comes to rewards, PenFed Visa is probably the best cc there is! No signing up for revolving categories and covers two most common purchases – groceries and gas!
I’ll have to look into the penfed visa. I’ve been hearing good things about it. Good job on saving on gas, it might not be much but it’s a lot better than nothing.
-Ravi Gupta
I can use any card I want at the pump at my kroger and get gas rewards. Why can’t you get gas rewards from Kroger?
I’m just glad that I don’t drive a lot and take public transit to work! I realize rising fuel prices will impact me in other ways, but the $30 I budget for gas each month didn’t even get used in March. Now I’m starting April with a buget roll-over of $30 on that line item, so if I have to put gas in the tank this month I’m sure $60 will cover it.
@Moneycone, I agree!
@Ravi, I hope PenFed impresses you too!
@Kevin, most store stations like Kroger and Walmart are not considered stand alone gas stations and aren’t eligible for full rewards to my knowledge.
@Linda, I wish there was public transport from Houston suburbs into Houston…the closest bus to me is 4 miles away and would make my commute 1 1/2 hours instead of 30-45 minutes…
I get my gas at Costco where their prices are generally 10-20 cents below market and receive a 3% rebate for using the Am Ex card.
I will have to try to see if the gas I buy at kroger is getting my 5% applied to my Penfed card… it is labeled separately from the grocery store and I thought that I was getting the full price.
Now they are no longer doing the 2% on groceries either, causing me to start considering looking for something else, though the 5% gas is nice. Will have to consider using the shell stations now.
Hi Crystal!
I don’t have all of the info yet, but Kroger just changed their gas reward policy. You can add your reward points to get up to $1.00 per gallon now…but many bloggers have looked at the new policy and decided there’s no way in heck anyone would be able to accumulate that many points. (Sorry–I haven’t done the research into this new program yet).
That might change your mind depending upon how it works out.
Giant Eagle offers a similar gas savings program here. I used to utilize them a lot… until I discovered Aldi. I save about 50% 0ff my grocery bill by shopping at Aldi that the gas savings don’t even come close to enticing me.
Also, I have a Marathon Mastercard so I get a 5% rebate on all my Marathon gas purchases, and since the local Marathon stations tend to be a cent or two cheaper than the other places it is a win-win.
I have the same thought process when deciding on paying cash or credit for gas. My American Express Blue Cash card gives a 5 percent rebate for gas and groceries, so I always come out ahead charging instead of paying cash.
I do what KrantCents does — I buy gas at CostCo, which is usually 10-20 cents cheaper, and get 2 percent cashback using AmEx (Krantcents is beating me with 3 percent cashback!)
One important note: I don’t drive out of my way to get to CostCo; that would be using gas to buy gas, which can be a losing prospect (as Len Penzo pointed out in a post a few weeks ago). I only fill up when I happen to be at CostCo anyway, which for me is about once a week.
Our gas here in Michigan just went up to $3.999 yesterday, so it’s bound to go over the $4 mark soon. It’s a good thing I just purchased my new bicycle! That costs me about $.01 per mile (this is for the cost of repair), plus I get some awesome exercise!
This comment is for Amanda and those bloggers who suppose that no one could get 1000 points at Kroger. I am able to routinely do this since I have 6 kids to feed. We go through a gallon of milk daily at a minimum. That almost $100 in milk each month by itself. Needless to say we eat other food as well. Since the points on purchases for this month (April) are good til May 31st, I will easily make my 1000. I have 391 already. It is nice to save a dollar per gallon on those 35 gallon purchases. With 6 kids, we have an 8 passenger Suburban.
@optionsdude, DANG!!! We are pretty happy when we can finish our gallon of milk before it goes bad…
You have my complete sympathy for your grocery bills!
Wow Optionsdude! That is amazing. I am sorry to hear about your high food bill, but perhaps you will now save on gas? Have you ever played the grocery game? I’ll bet you could save a fortune with it with so many mouths to feed.
I’m lucky to use public transport a lot. Sometimes I even ride a bike to work, it takes around 45 minutes.
Gas prices become a problem and you just given me a tip on how to help it out with my family. Thanks a lot.
The petroleum products’ price hikes are making transport detestable. It is becoming more and more expensive and for those who use gas to cook, I advice that you look for other alternative means.
I personally find it hard to purchase gas and petrol at a very high price, almost double the usual price, yet it takes a little time to need a refill. I will opt for public means though it is all the same. Thanks.
Great writing. With the small kids in the family, I think the gas is the best thing I would not miss purchasing whatever the cost. It takes time to use other sources as a parent with kids and also working. I think gas is faster and saves time.But if refilling it costs you a lot, I rather advice to use other sources instead. Thanks for your informative stuff.
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