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Pay Cash for Gas for Discount?
Posted By Jim On 05/31/2006 @ 3:41 pm In Personal Finance | 14 Comments
An article in USA Today  mentions a new method of saving money at the pump, paying in cash. The article cites a pump in South Carolina offering a four cent discount on each gallon of gasoline in return for payment in cash as opposed to credit. Considering that credit cards charge a percentage of the sale and a flat rate, this is a win for the gas station, a business with low profit margins (all the money is in the convenience store). While this is a win for the station, it’s a lose for the consumer.
Considering you can get a 5% cashback card on gasoline purchases and gas at, say, $2.50 (good luck finding that around here) per gallon – 5% is 12.5 cents. You personally save eight cents more by using credit over cash. (if you have a 5% cashback card, if you don’t, then the cash option is better)
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 article in USA Today: http://www.usatoday.com/money/industries/energy/2006-05-31-cash-for-gas-usat_x.htm
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