Sep 212008
With the ExxonMobil credit card you can get a 30 cents per gallon gas rebates on Exxon and Mobil Gasoline purchases for the first 60 days and 15 cents per gallon afterwards. Each year you earn 2% back on other purchases up to $10,000 and 1% afterwards.
The 2% cashback on all other purchases is a pretty good deal by itself.
What about 30 cents back for the first 60 days and 15 cents afterwards? The Exxon station by my house sells gas for $3.45. 30 cents back on that is roughly 8.7% cashback. A rebate of 15 cents per gallon would be 4.3% cashback.
The deal gets sweeter if you believe gas prices will drop over time. At $3 a gallon the 15 cent rebate is exactly 5% cashback. If gas drops any lower the cashback percentage only goes up.
Sounds like a good offering for an Exxon credit card. The only problem is I think gas is more likely to go up than down. But always trying to stay optimistic.
Craig
http://www.budgetpulse.com
Although all your facts (and math) appear accurate, there is another thing to consider. Assume gas is $3.00 per gallon at Exxon and you are the in 15c ranges, the discount is 5%. At $2 per gallon, it is 7.5%.
BUT – if you live in my neighborhood, the Exxon consisently charges 10 cents per gallon more than the Citgo around the corner. If gas is $2.00 at Exxon and $1.90 at Citgo, I pay a net 1.82 (with my Amex Blue Cash) vs. a net $1.85 at Exxon even with the higher discount percentage.