Walmart to Slash Gas Prices to Lure Shoppers

Higher prices at the pump are cutting into consumer spending


walmart store 300x180 Walmart to Slash Gas Prices to Lure ShoppersThe 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.

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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.

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