Month: April 2009

READ! .03/gal discount for Speedy Rewards members… rewards system isn’t as rewarding after May 1!

Perhaps to counter the negative sentiment as they shift to a new rewards program schedule, Speedway has announced in an e-mail that they’re “rolling back the pump price” for Speedy Rewards members on Saturday or Sunday (May 2 and 3). The offer ONLY applies to gasoline, and is not valid in Wisconsin or West Virginia.

You MUST bring your card, either the key size card or the full card. Swipe the card at the pump and receive 3-cents off per gallon! This is almost as good as their 5-cent discount when they initially came out with the Rewards system.

There is a disclaimer to this offer.

While it won’t counter their terrible changes to the reward system, it will be a nice way to part with Speedway… a “going away” party if you will.

Take it while it lasts and fill up the gas cans for the summer!

Patrick

I’ll be stepping out for a short time…

After a few busy weeks with a lot of things going on in the background here at TheGasGame, I’ve decided I need to temporarily dedicate more time to those things. Obviously, this means I’ll be away or working to get some things accomplished over the next couple days/weeks.

While I’m away, you can continue to count on posts every so often as needed, but several items will not be updated, such as “Today in Oil” and “Refinery Status”. I’m not sure if I’ll be gone for a few days or a week or two.

The time taken away from TheGasGame will allow me time to concentrate on opporunities that have arisen to me in the last couple months. I’ll definitely do my best to let everyone know what’s going on- so stay tuned here.

For now, I’m sure Ed will keep posting when needed. I want to thank everyone for taking the time to read our thoughts.

Patrick

Speedway eliminates instant discount, raises points required on best items in Speedy Rewards program

In a bad PR move for Speedway, they’ve decided to eliminate instant discounts for all of Speedway Chase Mastercard members and raise the points needed for redemption of the best benefits for all of the chain’s Speedy Reward customers.

If you aren’t already aware, Speedway had decided back in March that it was going to eliminate the instant discount that its credit card users received purchasing gas at the pump. While this discount was small, it was the premise for many individuals signing up for Speedway’s Chase Mastercard. The program had been going for years. Initially, Speedway was doing it month-to-month, but that change became permanent as gas prices climbed. Now that prices have come down, Speedway has eliminated the instant discount, perhaps alienating many of it’s best customers (including yours truly if you didn’t know)

While that baffled me, what irked me even more was the letter I got just a week or two ago from Speedway. Again, this letter was in regards to the additional benefits millions receive. Again, it was a negative move, requiring it’s Speedy Rewards members to save more points for similar items. Starting May 1, the Speedy Rewards program is ELIMINATING the $100 Speedway Gas Card that had previously required 66,000 points. They are replacing it with a $100 gas card that has a whopping 3-cent discount per gallon (of regular gas- for midgrade it’s 5-cents, and for premium, 7-cents) of gas purchased using the card. This 3-cent “price rollback” is essentially a new feature that will cost users 30,000 more points. This new $100 card “with 3-cent rollback” will cost Rewards members 96,000 points. Here are some numbers showing the difference and providing the REAL COST:

At today’s price of $2.059 per gallon, the current $100 gas card will get you:
48.57 gallons of regular

At today’s price of $2.059 per gallon, the FUTURE $100 gas card “WITH ROLLBACK” will get you:
49.29 gallons of regular

So basically with the new system starting May 1, you will get 0.72 gallons more for a near identical item. HOWEVER, the new gas card will cost 96,000 points compared to the old 66,000 points.

66000pts= $100 gas card = 48.57 @ 2.059
96000pts= $100 gas card = 49.29 @ 2.059

Using 2.059 per gallon, if you used the Speedway Chase Credit Card, you get 40 points per dollar at Speedway. The amount of time it would take under the old program and new program to get the $100 card:

WITHOUT USING SPEEDY REWARDS:
PRE-CHANGES $1650 (801.36gals @ 2.059) on Chase card = free 48.75gals
POST-CHANGES $2400 (1165.61gals @ 2.059) on Chase card = free 49.29gals

USING SPEEDY REWARDS AND SPEEDWAY CHASE MASTERCARD:
PRE-CHANGES $1471 (714.6 gallons @ 2.059) on Chase card AND Speedy Rewards card = free 48.75 gals
POST-CHANGES $2140 (1039.41 gallons @ 2.059) on Chase card AND Speedy Rewards card = free 49.29 gals

When the new “Rewards” system is active on May 1, it will now take you roughly 45% more time to save to a near identical item. Sure Speedway isn’t changing the points needed for their in store food, they wouldn’t want to hurt their profit loaded in-store business, right? Ha. Back to using my BP card? Let’s do the math:

Here’s the math on comparing the two:
Speedway’s old system of points meant every $1650 gives you roughly $100 of free gas which means it was roughly 6.1% off purchases/gasoline there if you always saved for a $100 gas card.
Speedway’s new system of points means every $2400 gives you roughly $100 of free gas which means it’s roughly 4.17% off purchases/gasoline there if you always saved for a $100 gas card.
BP’s system is easy- 5% off all BP purchases which means every $100 gives you $5 of free gas, meaning it’s exactly 5% off purchases/gasoline there without having to keep track of points.

With Speedway, I’ve gotten probably $250 in “rewards” since 2006. With BP, I’ve gotten exactly $800 in rewards since 2002 (although I put many more everyday purchases on the BP card).

After doing all that math, I can only say one thing:
Goodbye Speedway and your fountain drinks!

Speedway- let me know when you’ve raised rewards. I should add for those curious, BP has ONLY raised rewards, never lowered them. In this economy when every dollar counts, I’ll not only save my money on not buying fountain and frozen drinks at Speedway, but I’ll be getting a better deal at BP.

Prices vibrating around $2

Friday, April 24, 2009, 4:30 PM:  Whew.  Finals Week is over, and I have some time now to get back to the Game.  Since my last post on April 12, we had a reset on April 16 to $2.05, and then another hike this past Tuesday to $2.09.  Retail prices have been bouncing around while NYMEX prices have been pretty sedate, and the numbers indicate that the last hike was an attempt to close the recent “Chicago discount” that we have been enjoying.  Tuesday’s hike to $2.09 was pretty much in line with NYMEX prices that day, based on the old tried-and-true formula posted on this site.

So, if we don’t have any discount or premium now (and it is harder to tell now that the AXXIS quotes are no longer available for free), what lies ahead for next week.  Given today’s 4-cent rise on NYMEX, we have 0-cent margin price of about $1.93 and a 20-cent price of $2.14.  Retail prices are mostly in the $1.99 to $2.09 range, so I would be looking for gentle drops in prices over the weekend and on Monday.  On Tuesday, we could get a rise to $2.15 or so, but I don’t feel strongly enough about this to make a prediction right now.  Things might look different on Monday.

Speedway raises prices day after huge drop in wholesale prices

Let me just say how surprised I am that Speedway raised prices today. I think everyone should be able to see how out-of-line this price hike was as it stunned many.

Wholesale gasoline prices closed down a good amount yesterday, so why did Speedway raise prices? Good question.

And while we’re on the topic, Speedway is crippling its Speedy Rewards program effective May 1. Did something happen? Loss of 5-cent Speedway Credit Card discount on April 1, Speedy Rewards points “adjustments” May 1, what’s next? Oh well, guess I’ll have to find a new place to get fuel.

There was no reason for prices rising today except to increase profit margin (especially with the huge loss on the market yesterday)!

Patrick

Another new feature, “Today in Oil”

First off, this isn’t a prediction or warning 🙂

Just wanted to let our faithful readers know that in addition to starting to use Twitter, I also started a new page on TheGasGame.com. “Today in Oil” will be updated every evening with current gasoline and oil spot prices, as well as news and comments from yours truly. It will be updated every weekday (hopefully I won’t miss too many), but for those who like to see data on gas and oil markets, have at it.

I also wanted to thank everyone who visits daily, and for those who don’t, maybe you can come by a bit more often. Please feel free to sign up to receive our feed via e-mail as well (click the “Subscribe Free” button). You can also send anyone our posts via e-mail. Every post has a “Send” button on the bottom for ease. We just passed our 400,000 visitor and wanted to say a big THANK YOU to everyone who reads our site. Without you, we wouldn’t have many of the opportunities we’ve had so far.

Patrick

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