ANNAPOLIS, Md. -- Maryland Comptroller William Donald Schaefer announced his ruling yesterday in favor of regional grocer Giant Food Stores LLC, in response to complaints by other area gas stations that the grocer was in violation of the state's below-cost sales regulation on gasoline.
A competing station raised a complaint last week against Giant-owned Martin's Food Market in Hagerstown, Md., saying that a discount program could be a violation of state law, Michael Golden, a spokesperson for the comptroller, told The Baltimore Sun.
Carlisle, Pa.-based Giant Food Stores is currently offering customers 10 cents off per gallon on gasoline at Martin's Food Markets in Hagerstown and Cumberland, Md., for every $100 they spend on groceries. The credit can be redeemed at the pump for a limited time during the promotion by use of a customer Bonuscard.
In a ruling delivered April 27, the comptroller informed Giant that it could continue to operate its promotion in Maryland.
"It's my job to serve the people and enforce state law," Schaefer added. "That's exactly what we've done here. I commend the creativity of this promotion and the fact that it maintains the integrity of the below-cost sales regulation."
The comptroller's office determined that because the grocery credits were the equivalent of cash, customers are "in essence paying the full price" for fuel, Golden said.
"We need to do everything we can to help people survive rising utility rates and gas prices," said Schaefer. "I saw an opportunity to help people, so I took it. In my opinion, Giant Food has not violated state law."
Some lawmakers tried this year to repeal a state law banning below-cost gasoline sales, said the report, but station owners and petroleum companies said the prohibition was needed as protection against large chains and hypermarkets, which have used low-cost gasoline as an enticement to draw shoppers to their stores.
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