Last Updated on October 7, 2022 by
With the Corona restrictions easing across the country, people have started commuting to office, dropping kids off at school, and taking that long awaited vacation; all in their vehicles. The demand for fuel has reached pre-Covid levels but petrol rates too have skyrocketed due to increase in global crude oil prices. The common man is again facing the brunt of these price hikes.
If you don’t own a ‘fuel credit card’, this might be a good time to get one. Along with fuel surcharge waiver, these co-branded fuel credit cards offer various rewards and benefits to the cardholder.
Benefits Of Owning A Fuel Credit Card
Fuel surcharge of 2.5% waived off or given as cashback in next billing cycle
Option to redeem accumulated reward points for free fuel
Attractive cashbacks on fuel spends of a certain amount
Reward points redemption against attractive merchandise and discount coupons of famous brands
Popular Fuel Credit Cards in India
| Card Name | Annual Fee | Fuel Benefit |
| BPCL SBI Card Octane | Rs.1,499 | 6.25% + 1% Fuel surcharge waiver on every BPCL transaction up to Rs.4000 |
| IndianOil Citibank Platinum Credit Card | Based on bank’s discretion | Earn 4 Turbo Points for every Rs.150 spent and reversal of 1% fuel surcharge on fuel purchases at authorized IndianOil outlets. |
| IndianOil Axis Bank Credit Card | Rs. 500 | 4% value back on fuel purchase at IOCL outlets. 1% fuel surcharge on fuel purchases at any authorized fuel pumps. |
| IndianOil HDFC Bank Credit Card | Rs. 500 | Earn 5% of your spends as Fuel Points at IndianOil outlets |
| ICICI HPCL Coral Credit Card | Rs. 199 | 2.5% cashback on fuel purchases at HPCL Fuel Stations. 1% fuel surcharge waiver. |
Things To Keep In Mind Before Choosing A Fuel Credit Card
When it is time to choose the best fuel credit card in India, keep these points in mind:
Reward Points Validity
If you are a person who travels frequently, your fuel spend is going to be high and so are the reward points you earn for them. However, credit card issuers give limited validity on the reward points earned. They expire within 6 months or 1 year if you don’t redeem them. So find a credit card that offers maximum validity for your reward points.
Figure Out Your Fuel Spends Budget
These cards primarily offer benefits in the form of cashback and reward points. And these rewards or cashbacks are available only for spends of a certain amount. So if your fuel spends are nominal, you may not earn much reward points, negating the whole point of getting these cards.
Annual Fees And Other Charges
Since these cards are co-branded cards, you will need to pay joining fees and annual fees. Work out these charges against the rewards or cashbacks you will earn to see if they are truly beneficial. There is no point in getting a card with a high annual fee.
Joining Bonus And Welcome Benefits
It would serve you well to compare a few different fuel cards in the market for the joining bonus and welcome benefits they offer. Many credit cards attract customers with some amazing joining bonus and rewards like higher reward points and cashbacks during the first few months. Shop around to find a card that will give you maximum benefits.
Additional Read: 6 Questions To Ask Yourself While Choosing A Credit Card
Why Should I Choose A Co-Branded Fuel Credit Card?
Fuel cards are beneficial for people whose monthly spends includes a considerable share of fuel purchase. Petrol rates have crossed the Rs.100 mark in most cities and are increasing steadily. In the current pandemic, traveling in one’s own vehicle seems to be the safest option for many office goers. This makes fuel an essential commodity.
When you use co-branded cards at a company’s filling station, you’ll get more reward points, discounts, cashback, and other benefits. These fuel cards also waive the fuel surcharge, which you would normally have to pay at 2.5% of the transaction amount, if you used any other credit card.
Apart from the fuel surcharge waiver and cashbacks, these cards can be used for your other monthly purchases including groceries and utility bills. These cards offer enhanced reward points on these purchases too. For example, ICICI Bank Coral Credit Card offers 2 Payback points for every retail transaction instead of 1 Payback point. IndianOil Citibank Platinum Credit Card gives you 2 Turbo points for every Rs. 150 you spend on groceries and supermarket transactions.
Can I Upgrade My Current Credit Card To A Co-Branded Fuel Credit Card?
Yes, that would be a smart option. Talk to your bank and request them to upgrade your current credit card to a fuel credit card. This way you can negotiate with the bank to waive off the joining fee and see if you can get the card upgraded to a ‘Nil Annual Fee’ card.
A co-branded fuel credit card is a great option to save on fuel transactions, retail purchases, groceries and utility bills. They offer you more benefits compared to a regular credit card if you use the cashbacks and reward points in a timely manner.
Read More: The Advantages of Participating in a Reward and Recognition Program
