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Consumer

Pleasanton-Based Safeway Ends Gas Discount Program

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A Safeway supermarket in San Francisco, California. (Justin Sullivan/Getty Images)

A Safeway supermarket in San Francisco, California. (Justin Sullivan/Getty Images)

DougSovern20100908_KCBS_0208r Doug Sovern
Doug began his career as a copy boy at the New York Times, and then...
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PLEASANTON (KCBS) – Safeway is changing its popular gasoline discount program for Club Card members but company officials said it has nothing to do with a lawsuit brought by an independent gas station in Dixon.

Safeway Club Card members could get a $.03 discount on gasoline and even more by earning points when buying groceries at the store.

KCBS’ Doug Sovern Reports:

Attorney Jim Dombroski said that was destroying the independent Dixon Gas Club station along Interstate 80 because truckers and other customers were gassing up at a nearby Safeway instead.

“It was very difficult for him to survive,” said Dombroski.

So the station sued and has won a preliminary injunction forcing Safeway to stop selling gas below cost. Now, Safeway’s also ending the $.03 discount nationwide.

“While the immediate impact appears to be negative for the consumer, in fact, the benefit is substantial because this enhances fair competition and allows for small gas station owners to compete fairly,” said Dombroski.

For its part, Safeway said the end of the discount has nothing to do with the lawsuit and that Club Card members can still earn rewards of up to $1 off per gallon by grocery shopping.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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