How to shop for fuel rewards programs

If your business uses trucks and vans, it’s time to join one of the fuel rewards programs available, as you may be paying too much for gasoline and diesel., according to the GasBuddy/CSP Fuel Loyalty Report, 2017.

GasBuddy publishes a mobile app that uses crowdsourcing to help motorists find the best gas prices, cleanest restrooms and best coffee at service stations nationwide. In February, 2017, it surveyed more than 11,000 of its users and found that roughly half were not members of fuel rewards programs that can save motorists hundreds of dollars on gasoline and diesel purchases per year. At the time, GasBuddy said it was surprised, given its customers tend to be price-conscious drivers. The company went on to launch the nation’s first third-party fuel rewards program — Pay with GasBuddy™ — on Labor Day 2017.

Most fuel rewards programs offered in the United States today are backed by fuel brands (e.g.,  Shell, BP or Speedway), retailers that sell fuel (e.g. Costco, Kroger and Walmart) and credit card companies. In this article we will focus on the first two types of fuel rewards programs, which are aimed primarily at consumers and typically only award discounts for a single brand of fuel.

It costs nothing to join these fuel rewards program, but they generally require the user to purchase a minimum amount of fuel a certain number of times per month to qualify for their standard 3- to 5-cent-per-gallon discount.

Most fuel brands issue their fuel reward members a mobile app, a plastic rewards card and an ID number. To earn and redeem points, a member must swipe a rewards card or punch in an ID number at the pump before  fueling and can typically choose their preferred payment method. In most instances, members can earn additional fuel discounts by shopping at restaurants, retailers, travel companies and other businesses within the rewards network using an existing  credit card they have linked to their fuel rewards account.

Some rewards programs allow you to “stack” points earned through linked credit card purchases and other transactions to earn additional discounts, although limits may apply.

Here are a few criteria small businesses should consider when shopping for fuel rewards programs backed by fuel brands or retailers.

Consider your fuel needs. Make sure your points can be used on any fuel grade. If you are a landscaper, you will want to go with a retailer who pumps ethanol-free gas for all those two-cycle engines you use.

Convenience is key. Consider a rewards program that fits your current driving and shopping patterns rather one that requires you to change them. If you are accustomed to gassing up at a particular gas station because you like the coffee or hot dogs they sell in the convenience store, ask what rewards programs they offer. Assuming your commercial vehicle gets 16 miles to the gallon, you drive it 25,000 miles a year and you save an average of 5 cents per gallon through a fuel rewards program, the most your business can save in a year is about $80. That’s a nice meal for the family but hardly worth upending your routine. On the other hand, if you also use your rewards card when gassing up your personal vehicles and rack up a lot of points through a linked credit card, the savings could easily reach hundreds of dollars per year. If your favorite supermarket also pumps gas, check out its loyalty program. It may allow you to redeem points at its pumps that you earn buying groceries.

Read the fine print. Some programs limit savings to 20 gallons of fuel per purchase per vehicle. That means that if you pumped only pumped 15 gallons of fuel, you would abandon the remaining five gallons of discounted fuel.

Stacking discounts. Check what limits the program places on stacking points earned through various purchases. For instance, fuel retailers with convenience stores sometimes offer rewards as high as 15 cents per gallon to members who purchase specific items in their stores. These rewards can be added to the 5 cents per gallon earned through linked credit card expenditures and the average 3- to 6-cent-per-gallon discount, enabling the member to multiply their per gallon discount.