Cashback at the pumps as motorists squeezed by rising prices

Barclays and Tesco have announced a joint fuel cashback scheme to ease the rising cost of motoring, as global energy markets remain volatile amid renewed tensions in the Middle East.

From May 1 to July 31, eligible Barclays customers will be able to earn 5pc cashback on fuel purchases at Tesco petrol stations, in a move timed ahead of the busy early May bank holiday travel period.

The offer applies to fuel purchases between £5 and £200 made using eligible Barclays debit cards, with cashback capped at £10 per customer per month.

The scheme comes as drivers continue to face elevated fuel prices, with oil markets pushed higher by geopolitical uncertainty and concerns over supply disruptions in key shipping routes.

Barclays said cashback payments would typically be credited within one to two working days after transactions clear, appearing on statements as “Barclays Fuel CB”.

However, the promotion excludes certain fuel retailers, including Esso-branded forecourts, and applies only to selected personal current accounts, including basic, Premier, student and wealth banking customers.

The bank said eligibility is restricted to UK residents aged 18 and over, and stressed that full terms and conditions apply.

The launch coincides with a wider consumer incentive strategy from Barclays, which is also running a separate £200 switching offer for new current account customers opening accounts via its mobile app before May 28.

The initiative comes against a backdrop of rising essential spending, particularly on fuel, which Barclays said is contributing to pressure on household budgets despite relatively stable confidence levels among many consumers.

According to the bank’s internal consumer spending data, most UK adults still report confidence in managing their finances. Still, energy-related costs — particularly transport fuel — remain a key driver of increased household expenditure.

The cashback scheme adds to a growing trend of banks and retailers offering targeted rebates to offset inflationary pressures, particularly in sectors most exposed to global commodity price swings.