Motorists are being offered $5 off their fuel bills as service stations battle it out for customers.

Fuel giant BP is also luring customers with vouchers for retailer David Jones as part of a new loyalty program.

BP Rewards, launched late last month, will give customers $5 off their fuel bills for every 500 points they accrue.

They can redeem 1000 points for a $10 David Jones voucher or opt to instead collect Qantas Points.

“At heart, it’s all about providing choice like never before,” BP Australia vice-president sales and marketing Brooke Miller told the Herald Sun.

“Especially in these tough times, as we navigate our current environment, we want to support and reward our customers.”

Customers will earn two points for each litre of BP Ultimate Unleaded fuel they buy.

Every litre of other fuel earns one point a litre as does each dollar spent in-store.

A driver filling up on regular unleaded would need to spend $650 to get the $5 discount based on Melbourne’s average fuel price of $1.30/L yesterday.

BP, which has partnered with David Jones to offer gourmet takeaway meals and groceries, has spent months developing the rewards program.

“BP Rewards, with our partners Qantas Frequent Flyer and David Jones, has been carefully designed to deliver quality experiences, great offers and valued rewards for our customers across Australia,’’ Ms Miller said.HOW LOYALTY PROGRAMS STACK UP

BP REWARDS

$5 off for every 500 points or a $10 David Jones voucher for every 1000 points. 

Earn 2 points a litre on BP Ultimate Unleaded and 1 point a litre on other fuel and shop purchases.

Earn Qantas Points instead.

WOOLWORTHS REWARDS

4c a litre off at Caltex and Caltex Woolworths outlets when you spend $30 or more at Woolworths supermarkets.

Earn 1 point for every dollar spent on fuel and shop purchases.

Points can be converted to Qantas Points.

FLYBUYS

4c a litre off at Shell Coles Express when you spend $30 or more at Coles supermarkets.

10c a litre off when you spend $20 or more in-store.

Earn 1 point for every $2 spent on fuel and shop purchases.

Points can be converted to Velocity Points or used to redeem rewards.

Canstar editor-at-large Effie Zahos said the initiative aimed to compete against Woolworths and Coles, which both offer 4c a litre off fuel when customers spend $30 or more at the supermarket.

But she said searching online for the cheapest fuel before filling up was a guaranteed way to save.

The difference between some city service stations barely 1km apart could be up to 14c a litre.

“Rewards cards do change your behaviour mentally,’’ Ms Zahos said.

“If BP can cement their rewards membership they know they’ve got loyal customers coming to them.

“But with technology it is very easy to find out exactly where the cheapest petrol station near you is.”

Extracted from Herald Sun