Advice on getting a fuel card, the advantages and the options available in India.
Published on Apr 30, 2019 05:42:00 PM
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With the rising cost of fuel, owning a vehicle has become quite expensive. People are looking for various ways to save on fuel expenses. And in such a scenario, credit cards with benefits on fuel have become quite popular. These cards help you save on the overall cost of refuelling your vehicle with advantages such as surcharge waivers, accelerated rewards, or benefits at specific fuel stations. Let us understand why fuel credit cards deserve a place in your wallet.
Fuel credit cards are similar to normal credit cards with additional privileges on fuel purchase. They may also pack in some other benefits on shopping, travel, dining and entertainment. Broadly, there are three types of fuel benefits that can be availed on credit cards-
Fuel Surcharge Waiver- Most credit cards come with this feature. Whenever you make a payment for fuel, surcharges are levied on the amount, which can range from 1 percent to 3 percent. If your card offers this benefit, a certain percentage or the entire surcharge is waived off. However, the percentage, maximum cap and the transaction amount varies from one card to another.
Accelerated Rewards on Fuel- Another type of benefit comes in the form of rewards. Fuel transactions get you higher reward points than any other category. For example, if a retail transaction gives you 1 reward point for every Rs 100 spent, fuel may get you 5 reward points for the same amount. This feature does not help you save money immediately, but the more you use your card for fuel, the more rewards you will accumulate. These rewards can be redeemed for vouchers and merchandise.
Co-Branded Offers- Banks also collaborate with fuel stations to offer benefits to their customers. Under the co-branded scheme, you will earn higher rewards when you refuel at partner fuel stations. You may also enjoy benefits in other ways such as direct discounts.
Though a lot of banks offer some form of benefits on their credit cards, there are some cards that stand out when it comes to fuel benefits. Here are some of them:
1. BPCL SBI Card
Launched in collaboration with Bharat Petroleum, this SBI Card is best suited for your fuel needs. It offers 4.25 percent value back on fuel. Separately, it includes 3.25 percent in the form of reward points and 1 percent fuel surcharge waiver. When you refuel at BPCL petrol pumps, you will earn 13X reward points; a maximum of 1,300 reward points can be earned in a billing cycle. An additional 0.75 percent value back is offered as per a mandate from the Government of India. Some other benefits of this credit card include:
2. IndianOil Citi Platinum Credit Card
The Turbo Point program of this card, which has been launched by Citibank in association with Indian Oil, lets you make the most of your travel expenses. You can get up to 71 litres of free fuel every year through this credit card in the form of rewards across all categories. You will get 4 Turbo Points for every Rs 150 spent on fuel at Indian Oil outlets, plus the 1 percent fuel surcharge is waived off. The Turbo Points are equivalent to their value in rupees. Here are some other benefits of this card:
3. ICICI Bank HPCL Coral Credit Card
HPCL and ICICI Bank have joined hands to offer this fuel-centric credit card. With this card, you can get 2.5 percent cash back and 1 percent fuel surcharge waiver when you make fuel purchases at HPCL pumps. Other benefits are listed below:
4. Standard Chartered Super Value Titanium Credit Card
This card offers 5 percent cash back on fuel purchases across all fuel stations. The maximum cash back is capped at Rs 200 per billing cycle. Other benefits offered by this card are:
5. American Express Membership Rewards Credit Card
This is a premium credit card offering multiple benefits across various categories, including fuel. You can enjoy 0 percent convenience fee when you purchase fuel at HPCL pumps. Listed below are a few other benefits:
Fuel credit cards can be a great addition to your wallet. Once you get a fuel credit card, make smart use of it by putting all your fuel expenses on this card. Make regular bill payments and on time to make sure you do not incur debt.
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