Report: Safeway bids farewell to gas discount program

PLEASANTON, Calif. — Safeway shoppers looking to save at the pump this summer and beyond no longer will be able to, according to published reports.

The San Francisco Chronicle reported that the company discontinued its 3-cent-per-gallon gas discount for customers who carry the supermarket chain's club cards. The news follows a preliminary injunction filed in May against the chain, which said one of Safeway's stores, located in Dixon, Calif., "shall not set its fuel prices and related Club Card discount at levels that result in the sale of fuel below fully allocated costs unless the discounted Club Card price is at or above the documented price at which a surveyed fuel competitor is selling fuel within the 24-hour period to the Safeway sale of fuel below fully allocated cost." Safeway reported that the discontinuing of the gas discount program had nothing to do with the lawsuit.

Safeway officially discontinued the Club Card program nationwide last week and recently launched its Just for U loyalty card program, which bolstered the chain's quarterly earnings and is expected to drive sales for the future.

Click here for the full report.