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What are the benefits of using a credit card for fuel?

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Over the last few years, India has been witnessing a shift from debit cards to credit cards. In March 2020, the number of active credit card users in India crossed a whopping 57.4 million. The different categories of credit cards have also motivated people to opt for them. 

With shopping credit cards, one can earn cashbacks and accelerated rewards for spending at specific shopping outlets. On the other hand, travel credit cards are specifically designed to benefit people who travel often. 

From free air miles to exclusive privileges at airports — travel credit cards make your journey a lot easier. Another category of credit cards that is gaining popularity is the fuel credit card. As the name suggests, a fuel credit card can be very useful if you end up spending a good portion of your monthly expenses on fuel. 

Banks like Citibank have partnered with Indian Oil to offer the IndianOil Citi Credit Card, one of the leading fuel credit cards in India. Other options include the HDFC Bharat Credit Card, the ICICI Bank HPCL Platinum Credit Card, and the Bajaj Finserv RBL Bank SuperCard, among others. So before you apply for a fuel credit card, you need to know about its benefits.

Earn cashback and rewards for every fuel

Banks and financial institutions offer special rewards for every fuel transaction that you make. Some credit cards like the IndianOil Citi Credit Card offer accelerated reward points every time you make a fuel purchase at an Indian Oil fuel station. For every Rs. 150 you spend at an Indian Oil gas station, the card awards you 4 Turbo Points. With other fuel credit cards like the Bajaj Finserv Fuel credit card, HDFC Bharat CashBack Credit Card, you can earn 5% cashback on all your fuel transactions in a month.


As fuel prices continue to surge, it can be quite a big expense if you have to travel by car. A great way to save up on your fuel expenses is by using these fuel credit cards. By using them properly, you can end up saving a lot with these cashbacks and discounts.

Redeem the accrued reward points

Fuel credit cards have specialised reward points for fuel spends. Most fuel credit cards also offer some reward points for shopping and dining expenditures. All these reward points can eventually be redeemed for fuel. Therefore, you can actually avail fuel for free using your fuel credit cards. The ICICI Bank HPCL Platinum Credit Card, for instance,  allows you to redeem 2,000 reward points (PAYBACK points) for fuel worth Rs. 500.

Enjoy fuel surcharge waivers

Another advantage of using fuel credit cards for your fuel expenses is the surcharge waivers. Most lenders offer you fuel surcharge waivers if you opt for their fuel credit cards. These can range from 1% to even 2.5%. The Standard Chartered Super Value Titanium Credit Card is an amazing fuel credit card that offers a 2.5% fuel surcharge waiver at Indian Oil petrol pumps. The Bajaj Finserv RBL Bank Platinum Plus FYF SuperCard, on the other hand, offers a fuel surcharge waiver of up to Rs. 100 per month. Needless to mention, these can be great features to help you save money.

Annual fee waiver

Banks and credit card companies incentivize cardholders in different ways to make them use their credit cards to the fullest. Annual fee waivers are a great incentive for customers to spend more. You can often avoid paying your annual fee if you spend a certain amount of money in a year by using your credit card. The requisite annual spending may vary from 30,000 INR to 50,000 INR, depending on the financial institution.

 

Other benefits

You can also enjoy multiple other benefits by owning the best credit card machines and terminals. Some select fuel credit cards offer discounts on dining and shopping expenses. Few others offer cashback on telephone bills. Furthermore, some credit cards also let you avail of concierge assistance at hotels for free.

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