Chase BP Rewards 2012 Changes

by Thom

How much can I make with the Chase BP Rewards Visa Card?

In March 2012, BP changed the terms of their reward card. Instead of a straight percentage off on gas, travel / restaurants, and others. They now offer a cents off per gallon at the pump or a $15 statement credit for every $1.00 of savings earned at the pump.

I had two questions when I received the notice. First, is BP getting more money, and second, should I take the statement credit or cents off per gallon.

Below, I will explore these questions and whether these changes were good for BP consumers or good for BP the corporation. Check out the conclusion at the bottom.

Does BP Make More Money with this Format?

The short answer is Yes.  Let's take a look at what they use to pay out.  5% for gas purchases, 2% for travel and restaurants, and 1% for everything else.  If you spent $100 on each of these you would earn: $5 on gas, $2 on travel and restaurants, and $1 on everything else. 

With the new rewards program for every $100 you spend you earn cents off at the pump.  15 cents for BP gasoline, 5 cents on everything else. 

So let's explore the match a little more on this, To receive $15 you will need to spend almost $650 on BP gasoline, and $2000 on other charges.  Under the old program you needed to spend $300 in gas to get $15 and $750 in travel, and $1500 on everything else. 

Score 1 for BP.

Should I Choose $15 statement credit or Cents off per Gallon

What is the better deal, a $15 statement credit or receiving cents off per gallon.  Again, we must do some math.  Let's say you accumulate $1.00 in cents off.  That means you have earned a statement credit of $15.  In order to achieve the $15 savings at the pump, you will need to put in 15 gallons of gas.  If you put in less during each fill up, you should take the $15 statement credit.  If you put in more than 15 gallons with each fill up, you should use the cents off per gallon.

Score 2 for BP

Final Thoughts

My final thoughts are that BP has changed their rewards program to make it more beneficial for them, they actually save more money.  At a time when oil companies are earning billions of dollars in profits from high oil prices, changing the rewards program to benefit the consumer less doesn't seem like a brilliant PR move.  In fact, I think it will backfire.

Updated: 04/14/2012, Thom
 
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What do you think of the new BP Rewards program?


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Larry Daniels on 04/26/2012

Redemption at the pump within the statement cycle is fantastic. I don't wait for a credit. I have a 20 gallon tank so I earn 3% back when I fill up. Where else can I find that value for a gas card without an annual fee and instant POS redemption?

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