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Circle K offers answer to Costco and Kroger’s cheap gas

Even though gas prices have fallen, they remain over $4 per gallon, which continues to pressure household budgets and spending patterns.. That has prompted retailers to use fuel discounts as a way to attract shoppers and increase store traffic.

That’s something Kroger did earlier this week, with a deal that allows shoppers to save up to $35 on a fill-up, while Costco has made always offering low prices at the pump a core part of its business model. Now, Circle K has entered the fray with a major promotion for members of its Inner Circle Rewards program in seven states.

That’s a well-time move given where gas prices stand, even though they have come off their recent highs.

“The national average for a gallon of regular gasoline is down 18 cents since last week to $4.24. This marks the second straight week of decline. Pump prices are cooling off as the price of crude oil remains below $100 per barrel,” according to AAA data.

United States gas prices

  • Today’s (June 4) National Average: $4.241 
  • One Week Ago: $4.426 
  • One Month Ago: $4.457 
  • One Year Ago: $3.144 

Circle K offers a big deal on gas

Circle K has lowered prices, but you have to act quickly.

“Get ready for our Inner Circle celebration you won’t want to miss. On Thursday, June 11, Circle K is hosting Circle K Inner Circle Fuel Day at select locations! This means all Inner Circle members will get 40 cents off every gallon ALLDAY, simply by entering the phone number linked to their account directly at the pump,” the retailer shared on its website.

The promotion only applies in Arizona, California, Colorado, New Mexico, Nevada, Oregon, Texas, and Washington.

A visit to my local Circle K in Port St. Lucie, Florida, confirmed that the chain is not offering the discount in Florida, the biggest state by store count for the convenience store brand.

To get the promotion, members must be fully registered and enter their associated phone number at the pump, or register before the transaction. Once the phone number is entered, the discount will instantly apply.

The one-day promotion ends at midnight on June 11.

Circle K did not immediately return a request for comment as to when it will run this promotion again and why it did not offer it in Florida.

Kroger offers a longer-term gas deal

Kroger’s fuel promotion comes as Costco reports record gas volume.

Kroger shared a new 4X Fuel Points promotion on June 8.

“Customers can earn 4X Fuel Points on every dollar spent every Friday from June 12 through July 24, as well as July 1-4, when they clip the digital coupon in the Kroger app or on Kroger.com and shop in-store, through pickup or via delivery,” the company shared in a press release.

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Customers earn one Fuel Point for every $1 spent on groceries, but under the 4X promotion, they will earn four points for every dollar spent.

Every 100 points saves you $0.10 per gallon, up to $1 per gallon with a maximum of $35 in savings.

You do not need to be a member or pay to join Kroger’s program, but you do have to register for it.

Kroger’s program takes aim at Costco

Kroger’s efforts follow Costco reporting record gas volume during its third-quarter earnings call. Costco CEO Ron Vachris made it clear that gas sales at drive traffic to its stores.

“The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter. We believe this will drive even greater loyalty with these members in the future as members who use our gas stations typically spend more with us in the warehouse,” he added.

RTMNexus CEO Dominick Miserandino thinks Costco’s gas proposition will beat out Kroger’s.

“Wall Street looks at Kroger’s headline ‘Save up to $35’ fuel promo and thinks it’s a direct threat to Costco, but that completely misjudges the psychology of the modern consumer,” he said. “Costco wins because its value proposition is completely frictionless: you show your card, and you get the lowest price in town immediately.”

The grocery chain has made its process too many steps, he explained.

“Kroger’s model requires digital coupon clipping, tracking specific calendar windows like ‘4X Fridays,’ and monitoring point balances. In a tight economy, convenience-fatigued consumers eventually reject complex loyalty gamification,” he said.

Only Costco members can use its gas stations.

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Americans are wary about gas prices

Consumers are increasingly focused on saving money on gas, and a Numerator survey of more than 1,000 U.S. consumers shows many are adjusting spending in other categories. Key findings included:

  • 93% of drivers are trying to save money on gas.
  • 36% choose stations based on price over convenience.
  • 61% say gas prices are impacting ability to afford other expenses.

Location, of course, matters, and that’s an area where Kroger and Circle K have and edge over Costco,

Kroger also has a massive size advantage, since the grocery chain operates more than 1,700 gas stations, according to an SEC filing.

As of late May 2026, Costco operates 931 warehouses worldwide, including 639 in the U.S. and Puerto Rico. Costco also reported operating 747 gas stations at the end of fiscal 2025, according to Costco investor relations.

Circle K has roughly 6,846 U.S. stores across 47 states and territories, with Florida leading at 934, according to the company’s website. It operates around 2,000 in the eight states covered by the promotion.

Kroger fuel centers’ proximity to the company’s supermarkets helps Kroger draw in shoppers and provide robust fuel benefits as part of its loyalty program, Ken Fenyo, a former Kroger executive who is now managing partner of Pine Street Advisors, told C-Store Dive.

“I think the various incentives they have make you more likely to go to a Kroger fuel center, but then also really [provide] an incentive to spend more with Kroger because you’re going to get that fuel discount on the back end,” Fenyo said.

Over the past three years, Kroger has tripled the number of gas stations it operates, according to its annual report.

Related: As consumers struggle, Costco sets a troubling record