Personal Finance

Save 3c / litre at Petro Canada when you link your RBC Credit/Debit card (+ 20% more Petro Points)

  • Last Updated:
  • Jul 22nd, 2018 8:41 pm
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xgbsSS wrote:
Oct 20th, 2017 9:07 pm
I think it is a smart move. Both Petro-Points and Esso Xtra are not very compelling loyalty schemes to begin with, let alone getting a credit card based on them, so there was very little uptake to purchase gasoline at both Petro-Canada and Esso respectively or getting the credit cards that CIBC and RBC had offered previously. Petro-Canada partnering with RBC in this matter now attracts people to buy their gas at Petro Canada regardless of whether they have the Petro-Points card, earns them other points they might prefer (eg. Avion etc.) and then gives another incentive to join Petro-Points at the same time. Esso while not as comprehensive, has partnered with PC Mastercard with extra points, and 2c off (in points) as well.

Petro-Canada I think made a great move.
Well EssoExtra isn't that bad. At least not as bad as Shell with Air Miles. You get s steady rate of earning and if you go there often, you can have an extra rebate card of 2,5c/L.
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jfmartel wrote:
Oct 21st, 2017 1:34 am
Well EssoExtra isn't that bad. At least not as bad as Shell with Air Miles. You get s steady rate of earning and if you go there often, you can have an extra rebate card of 2,5c/L.
But these point programs were never valuable enough in general to attract many customers via credit card as standalone branded credit cards. If Petro Canada and Esso can attract the entire RBC or PC Financial customer base instead, they can make more money.
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xgbsSS wrote:
Oct 21st, 2017 7:52 am
But these point programs were never valuable enough in general to attract many customers via credit card as standalone branded credit cards. If Petro Canada and Esso can attract the entire RBC or PC Financial customer base instead, they can make more money.
I value Esso extra return at about 5% withb Esso extra card, rebate card with a 2% cash back card like MBNA RWE or PCfinancial.

Petro Canada is already at about 1% for the loyalty program. Adding 2.5 cents plus the cash back/point for the credit card is going to put that number to about 5-5.5%.

It's not going to be as good as the Loblaws gas bar but way better than many.
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jfmartel wrote:
Oct 21st, 2017 9:29 am

I value Esso extra return at about 5% withb Esso extra card, rebate card with a 2% cash back card like MBNA RWE or PCfinancial.

Petro Canada is already at about 1% for the loyalty program. Adding 2.5 cents plus the cash back/point for the credit card is going to put that number to about 5-5.5%.

It's not going to be as good as the Loblaws gas bar but way better than many.
Definitely, they can be valuable. That's not what I'm getting at. To get customers coming to the gas station, having the 3c off per litre as a feature from a major bank's entire line-up gets all people that bank from RBC to consider filling up at Petro Canada. Meanwhile, RBC may get more customer signups on their products if people know they can save much more by getting their card. This is probably why both Petro Canada and Esso have decided to not continue their respective credit cards.

Having a separate card, you have to make it valuable enough so that people would want to have that credit card vs the other options out there (eg. cashback, Airmiles, Aeroplan etc.) . While some people might like these gas cards because of no annual fee, in reality, people generally would pick cash back over these since it gives you bonuses on gas station purchases in many cases, isn't limited to specific gas stations and has much more easy value proposition. Then, higher income folks probably want a card with greater travel rewards or insurance protection. So I think both the CIBC Petro mastercard and RBC Esso Visa didn't get many customers. I had the RBC Esso Visa since it was my first credit card (switched to that from Classic) and since it was annual fee free, but never used it, even when I was at Esso. Now that RBC has this deal however, I would be more inclined to look at RBC credit cards and use it frequently.
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Use Any Linked RBC Cards to Save, Earn and Redeem
Pay with any of your linked RBC debit or credit cards to instantly save 3¢ on every litre of fuel and earn points faster at Petro-Canada. You can even use the same linked RBC cards to redeem Petro-Points.

You Get More Every Time You Use Your Linked RBC Cards At Petro-Canada

Instantly Save 3¢ per litre on fuel
+
Always Earn 20% more Petro-Points
+
RBC Rewards - Always Earn 20% more RBC Rewards points with an RBC Rewards credit card


Can I combine the 3¢ per litre fuel savings I receive by paying with my linked RBC card with other fuel savings offers at Petro-Canada?
Yes, you can save 3¢ per litre on fuel in addition to other fuel savings offers at Petro-Canada, such as a Fuel Savings Reward card or Preferred Price Card. Be sure to insert or provide your fuel savings card first during the transaction before using your linked RBC card as payment.

Please note that you can only use one additional fuel savings card in a transaction.

Do I still need to swipe my Petro-Points card to earn Petro-Points on my purchases?
No, when you pay with your linked RBC debit or credit card, you’ll automatically earn Petro-Points on your qualifying Petro-Canada purchases. For more information, please refer to the Petro-Points terms and conditions.

Can I convert my Petro-Points to RBC Rewards points?
No, you cannot convert your Petro-Points to RBC Rewards points at this time.
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Jul 20, 2009
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Thanks! Was really easy to link
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nmclean wrote:
Oct 19th, 2017 6:39 pm
Alright, I figure the value is according to this formula:

(0.03+(C-0.03)*0.012+0.002)/C

...for a no-fee rewards visa, where C is cost per liter.

With a best case scenario of 95 cents per liter, this is about 4.5%. That's combining the value from the discount and rewards.

RBC Rewards can be redeemed at 2500 = $25 Amazon gift card, so the Visa basically gives 1%, and 1.2% with the 20% bonus. The 20% Petro Points bonus gives an additional 2 PP per liter, worth 0.2 cents (1000 PP = $1 off gas).

After the discount you pay $0.92 per liter and get 1.2% x $0.92 in rewards and $0.002 in PP. Total value = 0.04304 off 0.95 = 4.53%.

With a worst case of $1.30 per liter, 3.63%.
Corrected the above because PP is 10 points per liter (not per dollar) and, from the petro-canada site:

"Earn 20% more points when you register your More Rewards®, CAA Ontario, BCAA or Hudson’s Bay Rewards™ card."

So you can already get the 20% PP bonus without a RBC card, and I don't think it will stack.


EDIT: Okay, apparently it will stack. Formulas updated again. Potentially CAA + RBC + HBC will yield a total of 1.6% in PP alone. Assuming 1.4% below (no CAA)...


Another way is to compare the effective cost per liter:

PP+RBC:
(C-0.03)*(1-0.012)-0.014
versus another card:
C*(1-R)-0.014
where R is the other card's return rate.

Up to at least $1.05/L, RBC+PP can beat or match a 4% card like Visa Infinite or Scotia Gold Amex (with no fee):

(1.05-0.03)*(1-0.012)-0.014 = $0.99376/L
vs.
1.05*(1-0.04)-0.012 = $0.996/L

If you travel, it would be worthwhile to open and link a More Rewards card, which adds 1 "More" point per dollar - easily redeemable against flight/hotel through morerewards.ca with 100 points minimum at a value of 1 point = $0.00424. Effective cost becomes:

(C-0.03)*(1-0.012-0.00424)-0.014

This is enough to beat Costco's price difference often, especially considering Costco is Mastercard only which for most people means 2% return max. For me, it's a total no-brainer because I still have the 5c/L discount card from ebay (which WILL stack with the RBC 3c).
Last edited by nmclean on Oct 31st, 2017 11:18 am, edited 2 times in total.
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Feb 20, 2009
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Thanks OP! This will now allow me to replace my MBNA as my gas card and also allow me to take my Petro Point card out of my wallet. Pretty hot!
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They finally realize the gas price is about $1/litre and adding 1c to saving and be back in the game. Now, it may be worth it to apply for the rbc cc.
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GTEH!
now to decide which RBC cc to apply for. Don't see any that I like.
Really want the 3 cents/L instant savings. Wish there was a "new" RBC/Petro Canada cc offering.
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Aug 20, 2008
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This is great. The 2 cent promotion ends today for RBC card holders.

It'll be weird not using my petro card though, I think I'll still swipe it anyways...
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Cjohnson202 wrote:
Oct 31st, 2017 11:28 am
This is great. The 2 cent promotion ends today for RBC card holders.

It'll be weird not using my petro card though, I think I'll still swipe it anyways...
Seriously? LOL
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Nice. Thanks OP!

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