British bank Barclays and supermarket giant Tesco have launched a joint cashback scheme offering drivers a 5% rebate on fuel purchases, as UK motorists continue to face elevated petrol and diesel costs.
How the cashback offer works
From May 1 through to July 31, Barclays personal debit card holders can earn 5% cashback on fuel transactions between £5 and £200 at Tesco petrol stations. The cashback is capped at £10 per calendar month per customer, meaning a maximum saving of £30 over the three-month promotion.
Eligible transactions include purchases of petrol, diesel, and other fuels at Tesco forecourts across the UK. The offer is automatically applied to Barclays debit card payments; no opt-in is required.
Fuel price context
The initiative comes as UK fuel prices remain elevated, partly due to geopolitical tensions. According to the RAC, the national average for unleaded petrol stood at 157.17p per litre on Monday, with diesel at 189.23p. Data from the Department for Energy Security and Net Zero, released on April 28, showed ultra low sulphur unleaded petrol averaging 156.99p per litre and ultra low sulphur diesel at 189.81p.
These prices are among the highest since the outbreak of the Ukraine war in February 2022, with diesel costs particularly affected by ongoing turmoil in the Middle East. The closure of the Strait of Hormuz, a vital shipping lane handling 20% of the world's oil trade, has contributed to supply constraints and price volatility.
Geopolitical backdrop
Since February 28, the United States and Israel have conducted joint military operations targeting key Iranian locations. Tehran responded with strikes across the Middle East and shut down the Strait of Hormuz. Although Washington and Tehran reached a temporary ceasefire, the strait remains closed, and the US has established a blockade around Iranian ports in an effort to force reopening and advance peace talks.
The Barclays-Tesco cashback offer provides a modest relief for drivers, with potential savings of up to £10 per month. As fuel prices continue to fluctuate, motorists are advised to compare forecourt prices and take advantage of such promotions where available.
