Will high gas prices cause lower gas rewards?

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milkthatcard
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Will high gas prices cause lower gas rewards?

Postby milkthatcard » Tue Apr 19, 2011 3:27 am

Three years ago I had a good card called Open Road that gave 5% on gas. Then when gas went high in 2008 the rebate was cut down. In my area gas is approaching $4.35. If it stays this high or goes up for summer 2011 think the gas rebates will be cut again? I'm not in the mood to apply for a credit card and then have the rebate reduced in a few months.


DarrellEW
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Postby DarrellEW » Tue Apr 19, 2011 11:49 am

The PenFed gas rewards card has been at 5% for a while, but they have been cutting the other benefits (used to get 2% on groceries too).
I think regardless of gas prices, credit card issuers will continue to cut/change rewards pretty frequently, which is ultimately the whole theory behind rewards cards. They're trying to draw in customers by offering good rewards, then eventually cutting them and hoping the customers are too lazy to find something better and just stick it out with them.

jerigan
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Postby jerigan » Sat Apr 23, 2011 12:48 pm

If gas prices continue as they are we could head into another recession. Thanks Obama! He said change will come and he did deliver. The change we're left with is what's in our pocket and that's it!

DoingHomework
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Postby DoingHomework » Mon Apr 25, 2011 8:58 am

jerigan wrote:If gas prices continue as they are we could head into another recession. Thanks Obama! He said change will come and he did deliver. The change we're left with is what's in our pocket and that's it!


Wow. Blaming Obama for conflict in the Middle East? Where does this come from? Oh wait, I know!

By the way, I realize Georgia schools are not very good. But the issues boiling to the surface in the ME have been there for millenia and will not go away. You are witnessing a power vacuum created by weakening of tyranical regimes that kept things in check. If you want to blame someone for high oil prices blame the two Bush presidents for removing a strong force in a secular oil-rich country.

But, I know, it's easier to just bash the guy out of ignorance. I would be curious to hear your cogent arguement for why you think Obama is raising gas prices.

jeffysdad
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Postby jeffysdad » Mon Apr 25, 2011 9:10 am

Well said, DH. Also worth mentioning here is speculators in the futures market.

And refiners preserving their crack spreads by not building any new capacity.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

DoingHomework
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Postby DoingHomework » Mon Apr 25, 2011 12:31 pm

jeffysdad wrote:Well said, DH. Also worth mentioning here is speculators in the futures market.

And refiners preserving their crack spreads by not building any new capacity.


Yes. And the fact is, oil prices are not that high. It is GAS prices that are high. If the federal government did something to keep gas prices down, the same Obama-bashers would criticize him for infringing on the free market.

There is plenty to blame Obama for just like there was plenty to blame Bush, Clinton, Bush, Reagan, Carter, Ford, ...Washington for. But really, if you think the president controls gas prices, well, you have a lot to learn. The good ol' boys that own gas stations control gas prices.

jeffysdad
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Postby jeffysdad » Mon Apr 25, 2011 1:14 pm

Well, not the gas station owners; they're largely hostage to their suppliers and their margins are razor thin.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

teserieL
 
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Postby teserieL » Fri Apr 29, 2011 1:31 am

If this gas price hike continues we will all be doomed. Economic downturns have some ripple effects that are certainly disturbing. For instance, incidents of theft of rare metals and gas have started growing. As the price of commodities rises, so does incidents of thievery. Metal robbers are hard to catch, unless they're caught in the act. I read this here: Precious metal and gasoline theft increasing nationwide.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon May 02, 2011 3:43 pm

What I don't understand is why gas is the same price as it was in July 2008 during the peak when oil was at $145. When oil is "only" $110 right now, why am I still paying $4.89 per gallon?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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zinger
 
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Postby zinger » Tue May 03, 2011 3:50 am

That's a good question. Why is gas as high as it is.



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