Fuel Credit Card: Are they worth it? How to choose the best fuel credit card

Fuel prices remain one of the biggest concerns for most people, especially those who use their personal vehicle for daily commute. There isn’t any way you can avoid refueling your car unless you buy an electric vehicle. But, you can definitely bring down fuel expenses by using a fuel credit card. Such credit cards come with discounts, exciting rewards, and fuel surcharge waivers that can be significantly helpful. 

What are fuel credit cards?

A fuel credit card is one of the several types of credit cards that offer rewards and savings to customers. In India, fuel credit cards are offered by banks that partner with oil marketing companies such as Bharat Petroleum Corporation Limited (BPCL) and IndianOil. To buy a fuel credit card, one just needs to visit a bank or its website and choose the card.

Different lenders have different eligibility criteria to get fuel credit cards. It is advised to contact the bank and know if you are eligible or not.

Are they worth it?

Fuel credit cards offer a range of benefits that effectively lower your fuel expenses. Some cards offer cashback every time you purchase fuel while others give reward points that can be redeemed to get free fuel, gift vouchers, travel rewards, cashback and more.

These cards also offer surcharge waivers with which you can save up to 1% to 2.5% on each of your fuel payments. This can come in handy if you are planning long road trips where one has to spend a significant amount on fueling up the vehicle.   

Customers can also get other benefits such as travel insurance, roadside assistance, discounts on hotel stays and dining with a fuel credit card. Besides these, using a fuel credit card also makes it convenient to pay for fuel.

How to choose the best fuel credit card?

In order to zero in on the best credit card, the best way is to compare the offers, benefits, interest rate, fees, and eligibility criteria of these cards. For instance, an IndianOil HDFC Bank credit card offers up to 50 days of interest free period and 1% fuel surcharge waiver at all fuel pumps across India. By spending Rs 50,000 or above in the first year after receiving the card, customers can get a waiver on the renewal membership fee. The joining/renewal membership fee for the IndianOil HDFC Bank credit card is Rs 500. 

The ICICI Bank HPCL Coral American Express Credit Card also offers benefits on purchasing fuel. It gives rewards points for every Rs 100 spent on fuel at HPCL pumps. Customers can collect these points and get fuel worth Rs 500 by redeeming 2,000 ICICI Bank reward points. The card also offers 2.5% cashback and 1% fuel surcharge waiver on fuel purchases at HPCL pumps. In addition, one can get a 25% discount on movie tickets and exclusive offers on dining.