Tesco launches first of its kind fuel saving scheme

12 Mar 2014

Today, Tesco, the largest fuel retailer in the UK, launches a new, industry-first initiative to help customers save up to 20p off a litre of fuel, just by doing their regular shop. Clubcard Fuel Save is the only scheme of its kind in the UK. It is unlike other fuel promotions, which are generally short-term and involve a one-off minimum spend.

Today, Tesco, the largest fuel retailer in the UK, launches a new, industry-first initiative to help customers save up to 20p off a litre of fuel, just by doing their regular shop.

Clubcard Fuel Save is the only scheme of its kind in the UK. It is unlike other fuel promotions, which are generally short-term and involve a one-off minimum spend.

The launch follows new research by Tesco revealing over half of shoppers (51%) find it hard to take advantage of traditional fuel promotions when a minimum spend is required. Whilst a third (31%) say they don’t benefit at all from them because the terms are either too expensive or not promoted on the items they need to buy.

So now at Tesco, every time a Clubcard holder buys something in store or does their grocery shopping online, however small the shop may be, it counts towards a saving on fuel. A 2p fuel discount is awarded for every £50 spent across a month, but customers don’t have to spend £50 all at once.

Clubcard Fuel Save has been designed to put money back in customers’ pockets.

At a glance, what’s new for customers about this scheme?

  • The savings are significant, up to 20p per litre in one transaction
  • It is inclusive. There is no one-off minimum spend, which has historically been a barrier to customers on tight budgets
  • It is cumulative, every shop counts towards discount, no matter how small, you save 2p per £50 spend, but you do not need to spend £50 in one go, the discount accumulates across a month
  • It is simple. You redeem savings automatically at the pumps by swiping your Clubcard. There are no paper vouchers
  • It is available to all Clubcard holders in the UK – that’s around 16 million people
  • It has been trialed already in Wales where over 70% of users said it’d make a big difference to their household budgets

The move will help customers across the UK. Figures show that rises in fuel prices mean we are, on average, spending around £700 more per year on fuel now than 10 years ago.** And customers say that the cost of petrol is something that really affects their household budgets.

Chris Bush, UK Managing Director of Tesco, comments: “Petrol prices are forcing families to make tough choices. By introducing Clubcard Fuel Save, we can do our bit to make everyday life easier. Nearly three in four users who took part in the trial said the savings we’re offering would make a big difference to their budgets. We’re delighted to be rolling this out nationally.”

The RAC’s Pete Williams welcomes the scheme, saying: “The price we pay for fuel makes a massive difference to household budgets. By launching this, Tesco has created one of the most powerful fuel discount schemes we have ever seen as it has the potential to help everyone who shops with them on a regular basis to significantly reduce the amount of money they spend on petrol and diesel every month.
 
Williams continues: “This promotion breaks the mould of one-off supermarket fuel discounts, based on spending over a certain amount in store. When you consider the average family shopping bill is £323 a month, the 2p a litre discount for every £50 spent could mean some households regularly save 12p a litre on a fill-up.”

Clubcard Fuel Save will not only help save pennies at the pump, but will also help bring families together, with 42% of Brits feeling they are missing out on quality time with relatives.

One in 10 say they hardly ever visit their loved ones. For those forgoing family visits, 46% claim fuel prices stop them from seeing their family and friends.

With nearly three quarters of those surveyed (72%) claiming that having a vehicle is either very important or essential, it’s not just family time that's sacrificed to keep it on the road. Almost one in five (17%) Brits are being forced to cut back on food so they can afford fuel for their vehicle. The top 10 things on which the nation is cutting back to afford fuel are:

1. Clothing for themselves (30%)
2. Going out (24%)
3. Holidays and weekends away (19%)
4. Food (17%)
5. Homeware (16%)
6. Electrical items (15%)
7. Evening activities e.g. going to the gym, evening classes (12%)
8. Buying birthday presents for a friend/family member (12%)
9. Buying Christmas presents for a friend/family member (11%)
10. Household cleaning products (11%)

And Brits are also having to swallow their pride with 24% admitting they ask their friends and family to contribute petrol money on shared trips.
 
Katie O’Donovan, Head of Communications and Partnership at Mumsnet, said: “Given that Brits now live on average 30 miles away from their immediate families, anything that helps with high fuel costs so they can get back on the road to visit friends and family is very welcome”.  
 
For more information and terms and conditions please visit www.tesco.com/fuelsave. Follow the conversation on Twitter at #FuelSave.

Notes to Editors:

Clubcard Fuel Save example:

If you spend a total of £323 over a month in store and grocery online, you gain 2p off per £50 spent.

This means you get a discount of 6 x 2p = 12p. You can use this discount for a fill-up of your choice at a Tesco fuel station and have until the next calendar month to redeem it. A new balance starts accruing at the beginning of each calendar month. The discount is capped at a maximum of 20p per litre per transaction.

Survey conducted by OnePoll of 2,000 respondents.

*Response from RAC.

** Average cost of unleaded petrol in 2003 was 76.3p per litre vs 133.35p per litre in 2012. Average cost of diesel was 78.1p in 2003 vs 138.15p in 2012 (Source: ONS).

Average spend on groceries per month at £323 (Kantar, July 2013), average family mileage at 12,000 miles per year and average use of 100 litres per month.

Clubcard Fuel Save is cumulative - every shop counts and it doesn’t insist on a one-off minimum spend.  And it’s simple:  customers shop, scan their Clubcard and save up to 20p a litre. Whenever customers reach £50 they will receive 2p per litre (£50 gets them 2p off, £100 gets them 4p off… etc.) Customers don’t have to spend £50 all at once. So whatever they normally buy helps them gain a discount at the pumps, up to 20p per litre.

Whilst no minimum one-off spend is required with Clubcard Fuel Save, there is a threshold of £50 that customers need to reach  before they can start accruing savings – but this can be achieved via multiple shops, as per above.

Savings add up over the month and can be used immediately or be saved up and used by the end of the next calendar month. A new Fuel Savings balance will start at the beginning of each month and cannot be combined with the previous month’s balance. Customers may, for example, choose to accrue fuel savings over the course of a month and use them all in one transaction for a larger per litre discount (up to 20p). Customers have the choice of whether to redeem their discount or not when they re-fuel. They may, for example, choose to accrue fuel savings over the course of a month and use them all in one transaction for a larger per litre discount (up to 20p).

Spend across all store formats (Tesco Extra, Superstore, Metro, Express) and grocery online all count towards a discount. Clubcard points are accrued as usual.

Tesco has 500 petrol stations in the UK and around 60% of the population live within 10 minutes of one.

For more information please contact the Tesco Press Office on
01992 644645

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