You can save on petrol spends with fuel credit cards: Which are the best?

You can receive the hiked petrol or diesel price as cashback by using a fuel credit card with a cashback feature.

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Illustration: Ajay Mohanty

With fuel costs running high, it pays to maximize your rewards at the pump. Fuel Credit cards are specially designed to save money every time you refill your vehicle with fuel.

With petrol and diesel prices on the rise, a fuel credit card can help cut down on the expenses that go into buying gas. Cashback is one of the attractive and rewarding offers provided on fuel credit cards. In the time of rising petrol and diesel prices, having one fuel credit card with a cashback feature is a saviour. The key to choosing a fuel rewards credit card is knowing how each type works and which one rewards your petrol-diesel spending style the most. 

"You can receive the hiked petrol or diesel price as cashback by using a fuel credit card with a cashback feature. Fuel credit cards also offer fuel surcharge waivers and accelerated reward points on fuel purchases which can be exchanged for both rewards and fuel purchases. Take a look at the annual fee for the credit card you're considering. Don't forget to check the annual fee for the credit card you're interested in; some cards waive this fee if you spend a certain amount within a year," said Adhil Shetty, CEO of Bankbazaar.

However, some of the best gas rewards cards that offer the highest cash-back rates also come with annual fees or joining fees, and so knowing how much you spend fueling up each year can help narrow down your card options.

Here are some of the best fuel credit cards of 2023 as per Bankbazaar

Credit card variant: Bank of Baroda 
Joining Fees: Rs 499

Key benefits:
1. 1% cashback every time you make a transaction using the credit card
2. Zero fuel surcharge
3. The joining and annual fee for the first year will be zero

BPCL SBI Credit Card
Joining Fees: Rs 499 

Key Benefits
 4.25 % Valueback (13X* Reward Points equivalent to 3.25% + 1% Fuel surcharge waiver on every transaction of upto Rs 4,000, exclusive of GST and other charges), at any BPCL petrol pump across the country.                                                           Maximum surcharge waiver of Rs 100 in a billing cycle, which is equivalent to an Annual Savings of Rs 1200.

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HDFC Bharat CashBack Credit Card
Joining Fee: Rs 500 

Key Benefits:
Savings with 5% monthly cashback  on Fuel expenses.
 Get 1% surcharge waiver and save upto Rs. 250 in every billing cycle  (Min transaction of Rs. 400)

IndianOil HDFC Bank Credit Card
Joining Fee: Rs 500

Key benefits
Earn up to 50 Litres of Free fuel annually 
Earn 5% of your spends as Fuel Points at IndianOil outlets (Max 250 Fuel Points per month in first 6 months, Max 150 Fuel Points post 6 months from card issuance)                                                          
Earn 5% of your spends as Fuel Points on Groceries and Bill Payments (Max 100 Fuel Points per month on each category)
Earn 1 Fuel Point for every ₹150 spent on all other purchases

IndianOil Axis Bank Credit Card
Joining Fee: Rs 500 

Key benefits
Free yourself from paying fuel surcharge waiver of 1%
Fuel Spends In India at any Fuel outlet between INR 200 and INR 5000 to avail the offer
 Maximum waiver of INR 50 per statement cycle. GST charged on fuel surcharge is non- refundable

Standard Chartered Super Value Titanium Credit Card
Joining Fee: Rs 750

Key Benefits
A 5% cashback on fuel spends at all fuel stations up to INR 200 per month (Max cashback INR 100 per transaction). 
 All transactions of INR 2,000 or below are eligible for cashback.

Air India SBI Signature Credit Card
Joining Fee: Rs 4999

Key benefits 
Get 1% fuel surcharge waiver with your Air India SBI Signature Card, across all petrol pumps
Purchase fuel worth Rs. 500 to Rs. 4,000, to avail this benefit
Get maximum surcharge waiver of Rs. 250 per statement cycle. Applicable taxes extra wherever applicable"

YES First Preferred Credit Card
Joining Fee: Rs 999

1% fuel surcharge waiver at all fuel stations across India for transactions between Rs 400 to Rs  5,000.

Key benefits
The annual fee of these credit cards ranges from zero to Rs1,000, along with an interest rate ranging from 3.25% per month to 3.40% per month. 
Apart from offers and benefits on your fuel expenses, these credit cards also provide a wide range of offers in other categories, such as entertainment, dining and shopping as well.  

IndianOil Axis Bank Credit Card gives you decent returns on fuel spends as well as other online spends. You get 4% value back on fuel transactions by earning 20 reward points per Rs. 100 at any IOCL fuel outlet in India.

HDFC Bharat Cashback Credit Card is a beginner-level credit card that is best suited for users seeking cashback on fuel. The card offers 5% cashback on fuel expenses, railway ticket bookings, groceries, bill payment, mobile recharge and spends on PayZapp/EasyEMI/ SmartBUY. You can save up to Rs. 3,600 every year through this credit card.

IndianOil HDFC Bank Credit Card is focused majorly on users from non-metro cities and towns of India and is offered in Visa and RuPay variants. Using this card, you can earn ‘fuel points’ across all spending categories and use the same against fuel purchases at IndianOil fuel stations. You can earn up to 50 litres of free fuel every year via this credit card. 

Apart from the ones mentioned above, Paisabazaar believes the following are also worth considering: 
bpcls ididi

As seen in the above tables,  fuel credit cards are offered by banks that partner with oil marketing companies such as Bharat Petroleum Corporation Limited (BPCL) and IndianOil.

ICICI Bank HPCL Super Saver Credit Card is a co-branded credit card that rewards you for your fuel transactions at HPCL petrol pumps. You can save up to 4% every time you use your card for fuel transactions. This credit card also offers benefits across other categories, such as travel, entertainment, dining and more. 

BPCL SBI Card Octane is a premium version of BPCL SBI Card and comes with additional advantages. With this card, you can get 7.25% value back on Bharatgas online payments through the website and mobile app. 

HPCL IDFC FIRST Power+ Credit Card is a co-branded fuel credit card that gives a decent value-back on your fuel expenses at HPCL Petrol Pumps. With this card, you can get a value back of up to 6.5% on your fuel spends. Besides fuel, this credit card also gives a decent value back on other categories as well like groceries and utility expenses. However, if you do not want to pay an annual fee of Rs. 500, you can also consider applying for a lower variant of this card; HPCL IDFC First Power Credit Card.

When choosing a fuel credit card, consumers should compare the rewards offered by the cards, the mode of earning and the redemption value of the earned rewards.

"For instance, Indian Oil HDFC Credit Card offers ‘Fuel Points’ instead of general rewards, which need to be converted into Indian Oil XtraRewards Point (XRP) at the time of redemption. On the other hand, SBI BPCL Credit Card offers general reward points, which can be redeemed to get BPCL vouchers," said  Rohit Chhibbar, Head of Credit Cards Business, Paisabazaar.

Along with fuel benefits, applicants should also consider the other categories, say movies or groceries, on which the card may be offering higher rewards and choose the one where the bonus categories align with their spending preferences.

First Published: Nov 21 2023 | 12:34 PM IST

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