Save as much as 8% on gas for life

 
Let me preface this post by saying,I LOVE AMERICAN EXPRESS!

My relationship with Amex has brought me tons of benefits, and this one is just more icing on the cake.  Through 1/31/2012, American Express is offering 5% reimbursement on all purchases from BP (and also assuming Arco, though I personally haven’t tested it).  Only 3 days left, get in on it soon; register your Amex card here.

Now to lock in this savings for as long as you can afford to, up front, go to a BP gas station and ask to buy prepaid gas cards.  If you try to buy the gift cards online, you may not get the 5% reimbursed as it seems BP’s gift card purchases online are handled by a third party, and your purchase may not show up on your statement as a BP purchase.  The great part about these BP gift cards is that if you live in an area where they charge a different gas price for cash purchases and credit card purchases, these gift cards allow you to pay the cash price.  If you always purchase gas with a credit card (as I do, gotta rack up them points & miles), then this is a way to save up to 8% on your gas purchases, AND get the points for them too.

Double MR points if you are buying them with the Amex Premier Rewards Gold card.  If you don’t have one and want to get one, leave a comment below with an email to contact you (or email me at getgowing@gmail.com and I can give you a referral link that is better than the current public offer.  It is first $175 annual fee waived, and 25k MR points after only $2,000 spend in 3 months.

If you’re in a full service state, make sure your attendant charges you the cash price before they start pumping.  So if you’re willing to invest and pay in advance your gas for the rest of the month, year, or many years, this is a way to keep your gas prices a little lower.

For the math proof continue reading.  Otherwise, feel free to tell your friends about this post and save them money too!

Last week, a local BP station was charging $3.15 for cash, $3.25 for credit.  If I buy $1000 in gift cards, I will get a statement credit of $50 reimbursed from Amex.

$1,000 in gas at $3.259/gallon = 307.692 gallons

$1,000 in gas at $3.159/gallon = 317.460 gallons

But since I effectively only paid $950 for the 317.460 gallons, I paid $2.992/gallon.

($950/317.460 gallons = $2.992/gallon)

Since I usually pay the credit price, I just saved 26.7¢ per gallon.

($3.259 – $2.992 = $0.0267)

Saving 26.7¢ is approximately saving 8.2% per gallon off of the regular price of $3.259 per gallon.  Of course gas prices fluctuate, so the savings will vary as well.  But its still a significant enough of a savings that I’m definitely going in as much as I can to maximize this deal.

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One Response to “Save as much as 8% on gas for life”

  1. […] January I wrote about the possibility of saving up to 8% on gas for life.  Here are the results from what I […]

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