CIBC Petro Points Mastercard Analysis

CIBC Petro Mastercard
Below contains a detailed cost/benefit analysis of the CIBC Petro Points Mastercard.

What are the rewards?
1. Get an initial bonus of 15,000 Petro points on your first purchase
2. Save 2 cents per litre when you fuel at Petro Canada
3. 10 Petro Points per dollar spent everywhere but Petro Canada
4. 50% more points when purchasing groceries, drug stores, and Petro Canada convenience stores
5. 5000 Petro points when you spend over $1000 each month

Below is a table that shows the rate of return depending on how you use the card. Note: It is assuming gas price of $1.30 per Litre. As well, Ideal redemption is 550 points per dollar (such as during promo times, you can redeem 5,500 points for 200L of save 5c). Average redemption is 750 points per dollar (such as a cup of coffee worth $1). The minimum redemption you should be getting is 1,100 points per dollar (such as the save 5c at regular price of 11,000 points)

Monthly Spend Spend at Petro-Canada Spend at groceries/drug Spend elsewhere
Ideal Avg Min Ideal Avg Min Ideal Avg Min
Under $1000 1.54% 2.73% 2.00% 1.36% 1.82% 1.33% 0.91%
Exactly $1000 2.45% 2.21% 1.99% 3.64% 2.67% 1.82% 2.73% 2.00% 1.36%
Over $1000 (e.g. $3000) 1.84% 1.76% 1.69% 3.03% 2.22% 1.52% 2.12% 1.56% 1.06%

The best benefit would be to spend exactly $1000 per month on groceries and drugs giving you an effective 3.64% rate of return!

How did you get this calculation?
“Savvy Buck, this is too good to be true! How did you come to this result?”

If you spend $1000 a month, you are getting 20,000 points a month, as shown below. 20,000 points is worth $36.4 when utilizing its best promo (5,500 points for 10C off 200L gas card)
Spend 1000 Grocery Petro

Conclusion: This card is an all or nothing type card. Meaning, it is great but only if you actually fill up at Petro Canada stations. If there is a local gas station with much cheaper gas prices, then all my calculations are thrown out the door!

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