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Supermarket deals offering discounts at the petrol pump are proving popular with shoppers, and up to 70 per cent of customers are using them at some petrol stations.
The promotions have also fuelled a discounting frenzy among oil companies wanting to get in on the action.
For just over three months supermarket chains have been giving shoppers dockets for discounts on petrol and diesel.
Progressive Enterprises (Woolworths, Foodtown and Countdown) kicked off the trend in September, offering a discount of 4c a litre at Shell and Gull service stations to shoppers who spent more than $40.
Foodstuffs soon announced its deal, giving shoppers at New World and Pak 'N Save the same discount at BP stations. The level of the discount is set by the supermarket chains.
But the discount war has intensified.
In the past fortnight Foodstuffs has offered discounts of 10c a litre with a bill of more than $70.
Progressive Enterprises matched it last week.
Richard Manaton, Progressive Enterprises general manager marketing, said the scheme was getting bigger and more than seven million vouchers had been issued since late October.
When Foodstuffs launched its scheme it said it could save customers about $100 a year.
A Shell spokeswoman would not disclose the volumes of discounts or whether the oil companies or supermarket chains paid for them, saying that was commercially sensitive.
Petrol station owners involved in the promotions told the Herald the scheme was popular with women, who did much of the supermarket shopping.
Glenys Rowe, part owner of BP2go at Rosebank in Auckland, said many people were taking advantage of the discounts. "They are popular and it's mostly been the lady shoppers who are using them."
Another BP outlet reported up to 70 per cent of its customers were taking advantage of the discounts.
Other oil companies have joined the action. Last month Mobil started offering a discount of 4c a litre when customers spend $4 or more in Mobil shops.
Caltex has decided to accept discount vouchers from any of the supermarkets for a maximum discount of 4c a litre until the end of this month.
The competing petrol and supermarket companies have not indicated when the promotions will end.
Mark Baker, Foodstuffs general manager retail, said the scheme was particularly successful at Pak 'N Save outlets which had their own fuel sites because of the convenience.
Pak 'N Save deals for its own stations are a 4c discount for a $40 grocery bill, and 6c for $60.
The discounts come on top of falling petrol prices.
Last week Mobil, Shell, Caltex and BP dropped their petrol prices by 2c a litre, bringing the price of 91 octane to 137.9c and 95 octane to 142.9c.
Prices have come down because of the falling cost of crude oil of more than 12 per cent so far this year. It was briefly as low as US$51.65 ($74.70).
Oil prices have hit a 19-month low in part because of a build-up in United States fuel stocks after a warmer-than-normal winter.
Customers say ...
Ariff Azman saved 29 cents yesterday. The Auckland University student pulled in at a Shell petrol station, put in $10 worth of petrol and used a Foodtown receipt to get a 4c per litre discount.
"I usually put petrol in once a month, so I don't think it saves me that much. I use [the voucher] just because I have it."
At the other end of the scale is Keshni Prasad, a retailer, whose estimated spend on petrol for the two family cars is $150 a week.
She doesn't use the vouchers, although they could save her from $4.35 a week for a 4 cents discount up to $10.88 for the 10c discount.
"It's because I'm always in a rush. I just pull up in the gas station and go again.
"I should use it, but I can't be bothered."
Mr Azman says the vouchers do not make him more loyal to one chain. He shops at Foodtown one week to get a voucher for Shell or Gull and New World the next to get discounts at BP.
"So I'm not very loyal to anybody."
