Tesco and Barclays hand millions of drivers key lifeline with major new fuel cashback offer

This will apply if they buy petrol or diesel between £5 and £200 using an eligible personal Barclays debit card at Tesco filling stations.

Barclays confirmed that this would be capped at £10 per calendar month per customer, and will depend on the date of purchase, rather than when the cashback was received.

The offer has been launched in response to soaring petrol and diesel prices stemming from a hike in oil costs following the war in Iran.

Fresh data from the RAC indicates that drivers are paying an average of 157.17p per litre for unleaded, while diesel motorists are charged 189.23p.

While prices have fallen slightly since costs peaked on April 15, they still remain much more expensive than they were at the start of the conflict in the Middle East.

Millions of drivers have been exposed to some of the highest prices seen in the UK since the aftermath of the Russian invasion of Ukraine in 2022.

At this time, drivers were routinely paying more than £1.90 for petrol and a staggering £2 for diesel, while some motorway service stations were charging upwards of 220p per litre.

Barclays and Tesco are launching the cashback offer shortly before the May bank holiday, which is expected to see millions of motorists up and down the country hit the road.

Vim Maru, chief executive of Barclays UK, said: "Through our partnership with Tesco, we're able to offer savings on fuel at a time when costs are rising, helping customers make their money go that bit further.

"This sits nicely alongside our £200 switcher offer for new customers wanting to open a Barclays current account."

RAC Fuel Watch shows that Tesco has the second lowest price of petrol on average when compared to the other "Big Four" supermarkets at just 154.5p per litre.

However, it does have the cheapest average diesel price at 188.1p when stacked up against Asda (188.2p), Sainsbury's (188.6p) and Morrisons (188.9p).

At the cheapest, drivers could find Tesco stores where they pay just 149.9p for petrol and 181.9p for diesel, as experts urge motorists to shop around for the best price.

Tesco UK chief executive Ashwin Prasad said: "Thanks to our partnership with Barclays, Tesco shoppers across the country will now be able to get cashback when they fill up their tank at Tesco using their Barclays debit card."

Barclays is also running a £200 switching offer for new customers who open a current account in the bank's app before May 28.

Other cashback offers are available for everyday spending for Blue Rewards, Premier and eligible Barclaycard customers.

This will allow them to get cashback rewards once they have registered in the Barclays app in supermarkets, including Tesco.