If you currently reside in the nation’s capital, you might be agitated and perturbed about the rising fuel costs. The cost of petrol in New Delhi is close to ₹100 per litre, even after the country announced that it was getting oil at a cheaper rate from Russia. There are various factors at play influencing the cost of fuel in the country. While there is nothing we can do about international oil prices or fluctuations in the exchange rate between the US Dollar and Indian Rupee, we can opt for a fuel credit card.
You will come across different types of credit cards, and each card is designed for a specific purpose. A fuel credit card, for example, is catered to individuals that spend a significant amount on fuel. If you commute to your office and have been frustrated with the skyrocketing fuel prices, a fuel credit card can be your companion. These credit cards offer benefits such as cashback and fuel surcharge waivers, and you can save a substantial amount annually using these cards.
How to Find the Best Fuel Credit Card in India
Before applying for a credit card to help you curb your fuel expenses, you must know what to look for. Here are a few aspects you need to remember before shortlisting credit cards.
- Cashback and Rewards
The best credit cards in India for fuel offer benefits such as cashback and reward points. For example, when you use your credit card at a gas station, you will receive some percentage as cashback.
Let us take the example of BPCL SBI Card Octane, which gives you 25 reward points when you spend ₹100 on BPCL Fuel, Lubricants & Bharat Gas (applicable only on the website and app). You further get 10 reward points for spending ₹100 on other retail purchases.
- Co-Branded Fuel Credit Cards
Co-branded fuel credit cards offer incredible rewards when you use these cards at partner outlets, including fuel surcharge waivers. You also get additional reward points on fuel purchases with these co-branded credit cards.
For instance, BPCL SBI Card Octane provides a 6.25% + 1% fuel surcharge waiver on every transaction up to ₹4000, which is applicable across all BPCL petrol pumps in the country. This makes BPCL SBI Card Octane one of the best credit cards in India for fuel.
- More Benefits for Vehicle Owners
Since we are talking about credit cards for vehicle owners, the best fuel credit cards offer more than just cashback and fuel surcharge waivers. Such credit cards should extend greater convenience, such as an auto-debit facility or a price lock feature.
For instance, the IDFC FIRST Power credit card, and the IDFC FIRST Power+ credit card provide 5% cashback up to ₹5o every month on FASTag top-ups.
- Non-Fuel Benefits
Inevitably, you will use the credit card for other purposes, such as grocery purchases and other day-to-day expenses. For this reason, the best credit cards in India for fuel offer plenty of non-fuel benefits, such as discounts and reward points.
For example, the IndianOil Axis Bank credit card offers a 1% value back on online shopping spending, as you can earn 5 reward points on every ₹100 spent. Moreover, you get 1 EDGE reward point when you spend ₹100 with this credit card.
If you frequently dine at restaurants and go to the movies, this credit card aligns with your activities and spending pattern. You get up to 15% discount when you use the credit card at partner restaurants under the Axis Bank Dining Delights program. Additionally, you can enjoy a 10% discount when you book movie tickets using this credit card on BookMyShow.
Other Factors You Should Consider When Choosing a Fuel Credit Card
Redemption of Reward Points
Apart from the factors mentioned above, you must also think about the ease of redeeming the reward points. The procedure should be transparent and easy for the cardholder. Depending on the type of fuel credit card, you can redeem them at partner fuel stations or while shopping online. You must select a credit card that offers benefits that are relevant to you – and your spending habits.
Reward Points Validity
Another factor you must consider is the validity period of the reward points. Most credit cards offer a 2-year validity period before the reward points expire. You must choose a credit card that offers a generous validity period.
Fees and Charges
Lastly, the best credit cards in India come with reasonable fees and charges. Most credit cards waive membership or renewal charges if you cross a milestone spending target during the first year. You can save on the annual fee by spending this amount during the year. You must also know about the add-on charges, hidden charges, and rebates before choosing a fuel credit card.
Credit cards that are specifically designed to reduce fuel expenses come to your aid if you spend a considerable amount on fuel every year. You must consider several factors before applying for a fuel credit card, such as its rewards, co-branded credit card benefits, and non-fuel benefits. You must also take a closer look at all the fees and charges to ensure that you save a decent amount annually using the credit card.