Maximizing Your Supermarket Fuel Points
Save $1.00/gallon (or more) on EVERY fill-up
Supermarket fuel points are a great little perk being offered by many chains across the country as a nominal "bribe" to get you to visit them more often and spend your grocery money there. These perks (like most reward programs) are really more fluff than substance, and most often created to benefit the sponsor of the reward program more than the end user...
UNLESS YOU KNOW HOW TO WORK THE SYSTEM
How Does It Work?:
First, let's get a general understanding about these programs- The details I present here are specific to Kroger, since that is the program I am most familiar with
(this is a generalized overview, since every fuel point program is individual, and may include extra details, restrictions, etc. that are not covered in this article).
- Earn 1 point for every $1 you spend in the grocery store
- Redeem 100 points for $.10/gallon savings
- Maximum $1.00/gallon savings per fill-up
- Maximum 35 gallons per fill-up
- Points expire at the end of the month after they are earned (Jan points expire end of Feb)

Based upon the details above, we see that, in order to maximize your fuel savings, you would need to spend $1,000 in order to save $1.00 per gallon (1.0%). With the maximum redemption of 35 gallons, that equates to a maximum savings of $35 for $1,000 in purchases (3.5%). These days, most vehicles have gas tanks of less than 20 gallons, and most of those people don't wait until they are limping in with an empty gas tank to fill up, effectively destroying any real benefit the program makes you think you have earned.
When you look at what you are actually saving compared to how much you have purchased, the numbers make you wonder why you were excited about the program in the first place.
To break down the actual savings by percent:
1,000 in purchases, equates to $1.00/gallon savings (1% overall rebate)
35 Gallons (max)- 3.5%
30 Gallons- 3.0%
25 Gallons- 2.5%
20 Gallons- 2.0%
15 Gallons- 1.5%
10 Gallons- 1.0% (average fuel fill-up amount)
It's all about the marketing:
Grocery chains love to advertise this program and the $1.00/gallon savings because people will perk up and listen, especially in times when gas prices are creeping back up. The perception of the savings is far away above the actual savings you receive. As evidenced in the examples above, the actual savings is pitifully low as compared to your investment. Of course, those of us who share our discounted fuel price on social media are also adding 'fuel to the fire', which is essentially more free advertising for the chain. Like so many other rewards programs, if the host of the program would advertise the actual "real-life" savings you could expect to receive, most people would never bother signing up in the first place.
Making the program work for you:
The real secret to savings here is in the gift cards. In fact, if you do it right, you can maximize your normal monthly spending habits by adding fuel discounts to the mix. Where we shop, gift cards are almost always credited as double fuel points. In other words, $100 in gift cards would be the same as spending $200 on groceries, effectively and instantly doubling the savings you receive. A few times per year, the gift card bonus skyrockets to 4x, bringing you the best bang for your buck. That 4x fuel times bonus becomes the perfect time to purchase extra gift cards for upcoming gift giving or stockpiling a supply for later.
Here is where the fun begins:
Take a look at your monthly spending commitments and see which of those can be replaced by gift cards. Do you pay Netflix every month? How about Hulu? Do you go to Starbucks every morning? Do you shop at Target? Amazon? JC Penney? Do you eat out at chain restaurants like Fridays? Applebees? Instead of using a credit or debit card for these purchases, buy gift cards and use those instead. For example, when you buy an Amazon gift card, add it to your Amazon account, so your purchases are covered by the gift card(s). If there are gift cards available, do the same for all of the other auto-pay subscription plans that would ordinarily take money directly out of your bank account.
For retail purchases, once you know that you are going to make a purchase, go get a gift card for that store first. With a little bit of pre-planning, you quickly become a master of this program, and reap the savings without feeling trapped by having to spend a fortune in the grocery store.
Are you planning a trip? Use gift cards to budget a monthly spending allowance and have the trip (at least) partially paid well in advance.
The hidden security benefit:
With all of the credit card breaches and online hacks that have been occurring over the past few years, more and more people are finding themselves victims of identity theft or, at the very least, afraid that their credit or debit card information has been compromised. When you use gift cards to make your purchases and pay for your online commitments, you have an added level of security because your credit card information is no longer at risk. When you eat at a restaurant, and present your credit card at the end of your meal, you are at risk of an unscrupulous server stealing your card information. That risk becomes severely limited if you pay for the meal with a gift card.
Is all of this really worthwhile?:
The answer to that depends entirely upon you and your personal spending habits. It took us a little while to make the most of this, and, even after 2 years of following this method, we are still finding new gift cards we can buy and use on a monthly basis to help us save money in the long run. It only takes $500/month of gift card purchases to reach 1000 fuel points ($1.00 savings per gallon).
Using the gift cards also makes it very easy to stick to a monthly budget- When you are budgeting your monthly discretionary spending, how much do you have left to spend? If you want to make a $20 purchase and only have $8 left on a gift card, it may make it easier to hold off on that purchase until next month's gift card purchase.