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Walmart to Slash Gas Prices to Lure Shoppers

Higher prices at the pump are cutting into consumer spending


Wal-Mart WMTThe nation’s largest retailer sees near record-high gasoline prices as an opportunity.

Discount retail giant Walmart (NYSE:WMT) will trim 15 cents off the price of a gallon of gas purchased at its store-based gas stations. In order to get the discount, customers must use either a credit card or a Walmart MoneyCard, Reuters notes.

Man Causes Mayhem at California Walmart
Man Causes Mayhem at California Walmart

Customers can take advantage of the gasoline markdown from April 1 through July 7. The move is meant to counter the impact of higher taxes, a sluggish economy and rising gas prices, which have constrained consumer spending.

A Walmart executive noted that for each 1-cent increase in gas prices, consumer disposable income declines by an aggregate $1 billion. The company has more than 1,000 gasoline stations at stores around the country.

Shoppers who use a Walmart gift card at the pump will receive a 10-cent per gallon discount.

In February, AAA found that U.S. households were paying an average of 4% of pre-tax income for gasoline as prices hit record highs.

Shares of Walmart rose fractionally in Tuesday morning trading.

Article printed from InvestorPlace Media,

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