Fuel expenses are a routine but significant part of many household budgets in India. For commuters in large cities, frequent refuelling can quietly add several thousands of rupees to monthly spending. While motorists cannot control petrol or diesel prices, the way they pay for fuel can help reduce the overall cost.
Using a credit card that offers cashback, reward points or fuel surcharge waivers is one simple way to bring down fuel expenses over time.
How fuel credit cards help cut costs
Many credit cards offer incentives when used at petrol pumps. These benefits usually come in the form of cashback, reward points that can later be redeemed, or a waiver of the fuel surcharge that is typically added to card payments.
“Fuel credit cards can meaningfully reduce monthly petrol and diesel expenses when used strategically. Many cards offer around 4–5 per cent value back through reward points along with a 1 per cent fuel surcharge waiver, which together improves the effective savings per transaction,” said Adhil Shetty, chief executive officer (CEO), Bankbazaar.
He added that consumers can maximise these benefits by using their card at partner fuel outlets, staying within monthly reward caps, and redeeming reward points regularly.
Popular fuel credit cards
Several banks offer credit cards designed specifically for fuel purchases. According to Bankbazaar.com, Some widely used options include:
· BPCL SBI Credit Card: Offers about 4.25 per cent value back as reward points on fuel purchases at BPCL outlets and a 1 per cent fuel surcharge waiver.
· Indian Oil Kotak Credit Card: Provides around 4 per cent value back on fuel spends at Indian Oil (IOCL) pumps, along with reward points on grocery and dining transactions.
· ICICI HPCL Super Saver Credit Card: Offers up to 5 per cent savings on fuel transactions at HPCL petrol pumps and through the HP Pay app.
· IDFC FIRST Power+ Credit Card: Provides accelerated reward points on HPCL fuel purchases and additional benefits on grocery and utility spends.
· Indian Oil Axis Bank Credit Card: Allows users to earn about 4 per cent value back on fuel purchases at IOCL outlets.
|
Credit Card |
Joining/Annual Fees |
Fuel Rewards |
Fuel Surcharge Waiver |
Welcome Benefits |
Other Benefits |
|
BPCL SBI Credit Card |
₹499 + GST |
Get 4.25 % valueback as 13X reward points at any BPCL petrol pump |
1% surcharge waiver |
2,000 bonus reward points on activation |
5 reward points on every ₹100 spent at dining, departmental stores, grocery, and movies |
|
Indian Oil Kotak Credit Card |
₹449 |
Save 4% on IndianOil Fuel Spends. Earn 24 Reward Points on every INR 150 spent, capped at 1200 Reward Points per statement cycle |
1% surcharge waiver |
1,000 reward points on spending ₹500 within 30 days of card issuance |
Earn 12 Reward Points on every INR 150 spent on grocery and dining. |
|
ICICI HPCL Super Saver Credit Card |
₹500 + GST |
5% savings on fuel spending at HPCL petrol pumps and on the HP Pay app |
1% surcharge waiver |
2,000 reward points |
Get a 25% discount (up to ₹100) on movie tickets on movie tickets at BookMyShow and INOX, twice a month |
|
IDFC FIRST Power+ Credit Card |
₹499 |
Earn 30 Rewards per ₹150 spends on HPCL fuel and 6 Happy Coins per ₹100 fuel spends through HP Pay App |
1% surcharge waiver |
Welcome benefits worth ₹2,500 |
30 Reward points per ₹150 spends on grocery & utility |
|
Indian Oil Axis Bank Cedit Card |
₹500 (2nd year onwards) |
Enjoy 4% value back on fuel transactions by earning 20 reward points per ₹100 spent at any IOCL fuel outlet in India |
1% surcharge waiver |
Earn up to 1,250 EDGE Reward Points on first fuel transactions |
Earn 5 reward points per ₹100 spent on online shopping |
Watch limits and conditions
Fuel benefits typically come with monthly limits. For instance, rewards or cashback may apply only up to a specific spending cap during a billing cycle. After that threshold, additional purchases may not earn rewards.
Some cards also offer the highest rewards only at partner fuel companies such as IOCL, Bharat Petroleum, or Hindustan Petroleum. Choosing a card that matches your usual petrol pump can, therefore, improve the overall benefit.
A small saving that adds up
For households that spend regularly on fuel, even modest rewards can accumulate. If a commuter spends around Rs 6,000 a month on petrol and saves about 3–5 per cent through rewards and surcharge waivers, the yearly savings could reach a few thousand rupees.
However, the benefits work only if the card bill is paid in full every month. Credit card interest rates are high, and carrying a balance can quickly wipes out any cashback or reward value earned.