Chrysler tries to boost sales by helping pay for gasoline

Whatever sticker prices, rebates and negotiated rates that shoppers in the Charleston area and elsewhere pay for a new Dodge Nitro, Jeep Compass or Chrysler Town & Country, they can count on one thing: their gas bill for close to 1,100 days will be less than $3 a gallon.

That's three years' piece of mind, fuel-wise, if nothing else.

"It's good news for the American people," said Keith Roberts, general manager of Hoover Dodge in Summerville and a partner in the local Hoover dealership.

Chrysler LLC, third largest of Detroit's Big 3 automakers, unveiled its fuel cost-savings plan earlier this week, which went into effect Wednesday and ends June 2. Under the promotion, buyers of most Chrysler, Dodge and Jeep cars and trucks will pay no more than $2.99 a gallon for fuel, with the carmaker picking up the difference. The offer is not available on some high-performance models, such as the Dodge Viper and SRT models of the Charger. It's based on average drive totals of 12,000 miles a year.

Triggered by a host of factors from the weak U.S. dollar to the surge in auto purchases in populous China and India, fuel prices have shot up this year to some of their steepest levels, even higher than in the jump after Hurricane Katrina in 2005.

On Thursday, the price of regular gas in the Charleston-North Charleston metro area as computed by AAA Caolinas and Oil Price Information Service averaged $3.506 a gallon, up 70 cents from a year ago and just off the all-time high of $3.515 set May 1. Diesel prices hit their historic peak Thursday in the Charleston area at $4.091 a gallon, close to 50 percent higher than the same time in 2007.

Chrysler's promotion is effective for regular, midgrade and premium gas and for diesel fuel. The diesel price rollback can be particularly helpful for commercial truck buyers.

Roberts said he's heard reports that "gas is going to go higher, close to $4 a gallon."

While not earth-shattering, fuel cost savings can be substantial. Based on the greater Charleston prices Thursday and 500 gallons of regular fuel used in a year, the gas expense reduction for Chrysler new car owners would be about $250 and it would be $500 for diesel owners, or if gas went up to $4 a gallon. If gas prices fall, the savings would be adjusted downward accordingly.

Here's how the rollback works: Chrysler customers are billed for gas on their credit cards just as in the past. But within 72 hours, the fuel expenses would be adjusted with the automaker picking up the tab for any costs above $2.99 a gallon.

Roberts said the big boost to Chrysler has been publicity over the fuel price promotion. "If you turned on (ABC's) Good Morning America, they started the show, 'How would you like to pay $2.99 for gas?' "

Reach Jim Parker at 937-5542 or jparker@postandcourier.com.