Let’s not overlook fuel affordability in convenience store choice

  • Wednesday, 23 October 2024 12:49

ED Column CC

I read with interest a recent article in the Minnesota Star Tribune examining the increasing popularity of Kwik Trip gas stations throughout the upper Midwest (“How Kwik Trip created a cult-like following in the Midwest”, September 28, 2024). 

According to the author, the growth of Kwik Trip can be explained by its ubiquitous footprint, large stores, affordable groceries, signature snacks, and friendly workforce. 

The Minnesota Bio-Fuels Association hosts fuel promotion events at gas stations around the Twin Cities metro area each year to educate drivers about the economic and environmental benefits of higher blends of ethanol in gasoline, including E15 (often marketed as Unleaded 88) and E85. When we talk to consumers about the criteria they seek in a convenience store, they rarely mention the reasons cited in the article.

According to a consumer survey conducted by the National Association of Convenience Stores (NACS) in 2024, 66 percent of consumers would drive five minutes out of their way to save five cents per gallon on fuel. Moreover, when NACS asked consumers why they prefer a specific gas station or chain, 56 percent of respondents cited lower prices. 

As a gas station, Kwik Trip has leaned into the sale of higher blends of ethanol like E15. Why? Because they know that it offers them a competitive advantage in bringing in consumers.

Unleaded 88 averages a $0.16 discount compared to regular E10 and the price gap between these two fuels can be as large as $0.30 - $0.40 in some locations. With the economy and inflation ranking as top issues on voters’ minds in the upcoming election, consumers are increasingly looking for fuel that is easier on their pocketbooks. Unleaded 88 can save them between $4.00 and $5.00 every time they fill up.

Convenience stores and gas stations around the state would be well served by following Kwik Trip’s example in providing consumer choice and affordability in fuel options.