Are Fuel Credit Cards Worth It?

Some of the Best Credit Cards for Fuel

Having a fuel credit card by your side can help lower your fuel expenses. Such kinds of cards typically offer exciting rewards, discounts and surcharge waivers when you use them to pay for fuel. In India, you can find a number of the best fuel credit cards from some of the top private and public sector banks. Here’s a table outlining some of the top fuel credit cards that are currently available in the country. 

Features & Benefits of Fuel Credit Card

Let’s take a look at the key benefits and features that some of the best fuel credit cards typically offer. 

• Co-Branding

Most fuel credit cards in India are co-branded. Co-branded fuel cards are the product of a partnership between the card issuer and an Oil Marketing Company (OMC). The BPCL SBI Card, for instance, is a co-branded card offered by SBI Card in partnership with Bharat Petroleum Corporation Limited. 

• Accelerated Rewards 

Fuel cards often provide accelerated rewards and cash back whenever you use them to pay for transactions made at partner OMC’s fuel outlets. For instance, the IndianOil Axis Bank Credit Card offers 20 reward points for every ₹100 spent at IndianOil outlets. So, if you frequently visit IndianOil outlets, using an IndianOil co-branded fuel card to pay for your transactions can help you accumulate rewards faster. 

• Discounts on Fuel Transactions 

In addition to reward points, you may get discounts in the form of value backs or cash backs on fuel transactions. However, the amount of value back or cash back is dependent on the type of fuel card you own. 

• Surcharge Waivers 

When you pay for fuel using a credit card, a charge known as the fuel surcharge is levied. It usually ranges from 1% to 3% of the total transaction value. Most fuel cards offer a fuel surcharge waiver of about 1%.  

What is a Fuel Credit Card?

A fuel credit card is one of the many different types of credit cards. It is designed primarily to offer rewards, discounts and other benefits centred around fuel purchases made using the card. 

 

Most of the best credit cards for fuel in India are often issued in partnership with a certain Oil Marketing Company (OMC) such as BPCL, HPCL or IndianOil. When you purchase fuel or other products such as lubricants or cooking gas from the partner OMC using the card, you get benefits such as cash backs, accelerated reward points and surcharge waivers. 

How to Apply for a Fuel Credit Card?

Applying for a fuel credit card is very simple. All you need to do is visit the website of the bank whose fuel card you wish to get and fill out and submit the online credit card application form. Remember to choose the right fuel card that you wish to apply for and attach all the necessary documentation before submitting the application. 

 

Once the application is submitted, the bank will check your eligibility and approve your application if satisfied. At this point, you will receive an intimation from the bank via an SMS or an e-mail. And within a few days, you will receive the card at the registered address mentioned by you in the credit card application. 

Eligibility & Documentation

To apply for a fuel card, you need to first satisfy certain eligibility criteria. This criterion varies from one card issuer to another. That said, meeting the following set of basic conditions can increase the chances of approval. 

1. Eligibility Criteria

 

• You must be a resident Indian

• You must have a regular source of income 

• You must be above 18 years of age 

• You must possess a credit score of at least 700 or above 

Note: Some card issuers may have strict minimum income requirements that you might need to meet to apply for fuel cards. Therefore, make sure to check the eligibility criteria first before proceeding to apply for the best credit card for fuel. 

 

You might be required to submit a few documents as part of the credit card application process. Knowing what they are beforehand can help you be better prepared. Here’s a quick overview of some of the basic documentation that you might need to submit.

2. Documents Required 

 

• A copy of your PAN card 

• A copy of your identity proof - Voter’s ID, Aadhaar, Driving Licence or Passport

• A copy of your address proof - Aadhaar, Voter’s ID, Passport or Driving Licence 

• A copy of your income proof - latest bank statements, form 16, latest salary slips or latest Income Tax Returns 

Note: Apart from the list mentioned above, the card issuing bank may require you to submit additional documentation. 

How to Choose the Best Fuel Credit Card?

There are a few factors that you need to consider if you wish to get the best credit card for fuel in India. Let’s take a quick look at some of them. 

• Usage 

Your usage is a major factor that you need to consider when choosing a fuel credit card. For instance, if most of your fuel purchases are from BPCL outlets, a BPCL co-branded fuel card may be the best option for you. 

• Nature of Benefits 

Some fuel cards offer cash back, while others offer reward points. Therefore, it is important to choose a fuel card that offers just the kind of benefits that you wish to enjoy. 

• Accelerated Rewards 

Most of the best fuel credit cards in the country offer accelerated rewards when you purchase fuel from partner OMCs. The higher the rewards are, the more you get to save. So, make sure to choose a card that offers the largest rewards.  

• Fuel Surcharge Waiver

Many fuel credit cards offer fuel surcharge waivers of about 1% of the total transaction value. However, there are a few cards that don’t offer such waivers. Therefore, when choosing a fuel card, ensure that it comes with a fuel surcharge waiver. 

• Limits on Rewards 

Card issuers generally impose an upper limit on the total amount of cash back or points that you can accumulate during a billing cycle. If you purchase fuel frequently, you might want to consider getting a fuel card with higher upper limits. This will allow you to maximise the benefits offered by the card.