The impact of retail gasoline promotions & discounts on independent retailers : Impact of retail gasoline promotions and discounts on independent retailers

Government allowed existing promotions to continue so as to minimize the disruption to the market in the short run, and to allow market development in the long run. [...] The 2008 evaluation report concluded the discussion of promotions with the following recommendation: The Regulator should conduct a review of the impact of the regulations with respect to promotions to ensure the regulations and their interpretation are consistent with the overall objectives of regulation. [...] This is because the cost of the fuel itself, or the cost of the products/services linked to the fuel purchase, is lower by virtue of the promotion that is triggered. [...] Promotions by themselves are not enough to substantially change purchasing patterns where the cost of attaining the benefit of the promotion outweighs the value of the benefit. [...] Though the cash value is less than the 3.5 cpl offered by cross-merchandisers, this is believed to be offset by the immediacy of the reward and the ease of use (no receipts to keep track of).