Retailers roll out fuel perks as consumers look for relief from $4 gas amid U.S.-Iran war

Restaurants are getting in on the trend with promotions tied to travel and in-store visits. Subway is offering a buy-one, get-one Footlong deal for Sam’s Club members through April 28. Meanwhile, Papa John’s launched “Pizza Miles,” a rewards program that lets customers earn points on carryout orders that can be redeemed on future purchases. And Snooze Eatery introduced a limited-time dine-in discount pegged to each state’s average gas price.

Gas prices have gotten so high that some couriers are offering temporary fuel incentives for delivery workers. DoorDash recently brought back a gas rewards program first introduced in 2022, following the Russian invasion of Ukraine — which also caused gas prices to spike at the time — offering 10% cash back on fuel purchases. Uber is also offering fuel discounts of up to $1.44 per gallon for U.S. drivers.

A fresh spike in gas prices is adding pressure to already cost-conscious consumers. U.S. gas prices surpassed $4 a gallon for the first time since 2022 earlier this month, according to the American Automobile Association, as the war in Iran pushes up fuel costs. As of Monday, the national average for regular gas stands at $4.02 — down slightly week over week following the announcement of a two-week ceasefire on April 7, but still well above the $3.15 average a year ago. Gas prices are likely to remain volatile. 

“That relief may prove fleeting,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement. “Oil prices surged in Sunday night trading after Iran re-closed the Strait of Hormuz and President Trump signaled further escalation if Tehran does not come to an agreement.”

In the meantime, retailers and restaurants are seizing on high gas prices to drive short-term traffic and boost their loyalty programs through fuel incentives. It’s not the first time. In 2022, gas prices surged following Russia’s invasion of Ukraine, prompting companies from Walmart to Krispy Kreme to roll out promotions tied to fuel savings. These incentives can give retailers a boost, even when price-sensitive consumers are pulling back. 

Promotions around gas and fuel “definitely help bring in customers during these periods of economic uncertainty,” according to R.J. Hottovy, head of analytical research at Placer.ai, an analytics firm that uses anonymized data from mobile devices to estimate overall visits to locations. Still, fuel incentives can’t fully offset the pressure consumers feel when their budgets are stretched, he added. 

Some retailers are using gas promotions to draw shoppers into their membership programs. The strategy is not new. Amazon, for example, officially introduced fuel savings for Prime members in October 2024, allowing customers to save 10 cents a gallon at 7,000 pumps across the U.S. Amazon says the benefit saves Prime members about $70 annually.

Moz Thomas, director of worldwide Amazon Prime benefits, pricing and constructs, previously told Modern Retail in an interview that the company’s gas perk grew out of a broader research into how Prime could make everyday expenses and errands easier for members. His team surveyed customers in the U.S. and U.K. about where they regularly spend money and which expenses still feel painful. 

“We narrowed it down and did quantitative analysis to understand what population size would be interested in each of these different types of concepts,” Thomas said. From there, the team split ideas into three buckets: things Amazon should build itself, things it should partner on and concepts it would co‑create.

“Fuel savings was a big one that came out of that,” he said. “It was not something we could offer ourselves, so we found partners.” Amazon’s fuel partners include BP, Amoco, Ampm and Thorntons. 

Fuel discounts fit into a larger playbook in which Amazon uses perks to pull people into Prime and keep them active across its ecosystem. Thomas said the company evaluates potential benefits on three criteria: whether customers will love them, whether they “elevate the experience” and whether they’re good for Amazon’s business. 

In general, Thomas said Prime perks lead to more engagement and spending. When people sign up for Prime, “they get engaged with us, they become Prime [members], and then, naturally, the next thing to do is buy something on Amazon,” Thomas said. 

Amazon isn’t alone. Kroger introduced its loyalty program, Boost, in 2021 to compete with similar programs from Walmart and Amazon. The program lets customers earn double fuel points on every dollar when members shop at Kroger stores. 

“Fuel continues to be an important part of our strategy, building loyalty through our fuel rewards program and providing another source of value for our customers,” David Kennerley, Kroger’s CFO, said during the company’s most recent earnings call last month. 

For Amazon, higher gas prices may also give its e-commerce business a boost. A recent report from Omnisend found online spending jumped 20% month over month in March — far above typical trends — as consumers avoided trips to save money on gas, with orders up 12% and average order value rising 8%. In a survey of 1,000 consumers, 83% of respondents said gas prices are their biggest cost concern, and nearly a third said they plan to shift more shopping online to cut back on driving.

Still, if high gas prices persist, companies could introduce additional surcharges. Amazon has already implemented a 3.5% fuel and logistics surcharge for third-party sellers. Many restaurant chains, including Waffle House and Denny’s, imposed egg surcharges after the avian flu outbreak drove costs to record highs in 2025. 

Data from Placer.ai shows shoppers are pulling back on trips to discretionary stores and venues while prioritizing essential purchases to stretch their budgets.

“Over the past two years, we’ve really entered a period of hyper–price sensitivity,” Hottovy said. “Consumers remember exactly what they paid on their last trip, and we see clear evidence that they’re trying to get ahead of price increases.”