Fuel Credit Cards Explained: Benefits, Surcharge Waiver & Usage

Managing monthly petrol and diesel expenses has become a significant part of household budgets, especially for daily commuters. With rising fuel prices, many consumers search for a fuel credit card that helps reduce overall spending through cashback, reward points, and surcharge waivers. These cards offer targeted savings every time you fill fuel at partnered outlets, making them an effective way to optimise routine fuel costs.

In this guide, we explain what a fuel credit card is, how fuel surcharge waiver works, India’s top cards for petrol and diesel purchases, eligibility rules, and a step-by-step application process. Whether you drive a two-wheeler, car, or manage fleet expenses, this article helps you choose the best fuel credit card in India based on usage, network, rewards, and monthly spending.

Table of Contents:

1. What Are Fuel Credit Cards?
2. What is a Fuel Surcharge Waiver and How Does It Work?
3. Key Benefits of Fuel Credit Cards
4. Best Credit Cards for Fuel in India (Updated List)
5. Fuel Credit Cards Comparison Table
6. How to Choose the Best Fuel Credit Card 
7. Eligibility Criteria to Apply for a Fuel Credit Card
8. How to Apply for a Fuel Credit Card?

What Are Fuel Credit Cards?

A fuel credit card is a specialised credit card designed to help users save money on petrol and diesel expenses. Instead of generic reward programs, these cards focus on fuel-focused benefits such as cashback on fuel transactions, accelerated rewards at petrol pumps, and a complete or partial fuel surcharge waiver on credit card payments.

Most fuel cards are co-branded with major oil marketing companies (OMCs) like IndianOil, HPCL, and BPCL. These partnerships ensure that users get maximum value when they fill fuel at specific outlets. For example, a BPCL-co-branded card may offer 4–5% reward benefits at BPCL pumps but lower returns at other networks.

Typically, a fuel credit card gives benefits such as:

• Surcharge waiver of 1% on fuel spends
   
• Additional reward points on petrol and diesel
   
• Monthly savings caps (from ₹100 to ₹500 per month)
   
• Co-branded rewards such as PetroPoints, HP Pay rewards, or IndianOil XTRAREWARDS

These features make a credit card for fuel benefits ideal for individuals who want consistent savings on every refill without changing their pending behaviour.

What is a Fuel Surcharge Waiver and How Does It Work?

A fuel surcharge waiver is one of the most important features of any petrol credit card. When you buy fuel using a credit card, petrol pumps levy a 1% surcharge on the transaction value. This fee is added by payment networks or acquirers, not the bank.

How a Fuel Surcharge Works (Basic Rule)

• Fuel surcharge: 1% of the transaction amount
• Additional GST: 18% on the surcharge
• Effective total charge: 1.18% extra

A fuel surcharge waiver removes this additional cost, reducing the final bill.

Example:
Let’s assume you purchase ₹2,000 worth of fuel using a regular credit card.

• Surcharge @1%: ₹20
• GST @18%: ₹3.60
• Total additional fee: ₹23.60

With a fuel surcharge waiver, you save ₹23.60 on this transaction.

Important to Note

• Most cards give a waiver only for transactions between ₹400–₹5,000.
• GST on surcharge (18%) is usually not refunded, except on selected premium cards.
• There is a monthly waiver cap of ₹100, ₹150, or ₹250, depending on the card.

Understanding these rules helps you choose the best card for fuel spends based on how much you refuel every month.

Key Benefits of Fuel Credit Cards

Fuel credit cards offer more than just surcharge waivers. They provide several valuable benefits designed to maximise savings for regular commuters, along with additional perks across refuelling, shopping, and travel.

1. Lower Fuel Costs Through Surcharge Waivers
The biggest advantage is the 1% fuel surcharge waiver, which leads to monthly savings up to ₹200–₹300 depending on your usage. This benefit is automatic at eligible fuel stations.

2. Accelerated Reward Points on Petrol and Diesel
Most petrol credit cards offer 3X–5X rewards on fuel transactions. These points can be redeemed for free fuel, vouchers, or statement credit.

Example:
 A co-branded card offering 4% reward rate on fuel can help a user spending ₹6,000 a month save nearly ₹288 per month in reward value.

3. Co-Branded Benefits with IOC, BPCL, and HPCL
Fuel credit cards linked with oil companies allow benefits like:

• Instant discounts
• Faster reward redemptions
• Access to exclusive offers
• Savings at thousands of networked fuel pumps

4. Ideal for Daily Commuters and Car Owners
If you spend even ₹2,000–₹4,000 monthly on fuel, a fuel card ensures consistent savings without changing habits.

5. Additional Lifestyle Benefits
Even though focused on fuel savings, many cards provide:

• Airport lounge access
• Dining discounts
• Cashback on online shopping
• Insurance coverage

This makes them a balanced option for users wanting both routine and premium benefits.

Best Credit Cards for Fuel in India (Updated List)

Below are the best fuel credit cards in India. Each card offers surcharge waivers, accelerated rewards, and structured savings on petrol and diesel spends. The list covers users who prefer IndianOil, BPCL, HPCL, or want wider acceptance across stations.

1. IndianOil Axis Bank IndianOil Credit Card

This co-branded petrol credit card is ideal for users who frequently refuel at IndianOil petrol pumps. It offers strong rewards via the IndianOil XTRAREWARDS programme and consistent savings on fuel transactions. The surcharge waiver and accelerated earnings make it suitable for moderate daily commuters.

Features & Benefits

• 4% value back on IndianOil fuel spends through reward points
   
• 1% fuel surcharge waiver on transactions between ₹400–₹4,000
   
• Complimentary IndianOil XTRAREWARDS membership
   
• Additional benefits of online spending

Reward Points Structure

• 20 EDGE Points per ₹100 spent at IndianOil
   
• 1 EDGE Point per ₹100 on other retail spends
   
• Points redeemable for free fuel at IndianOil outlets

Fees & Charges

• Joining fee: ₹500 + GST
   
• Annual fee: ₹500 + GST
   
• Annual fee waived on spends of ₹50,000 in the previous year

Also want to know whether this card suits your fuel spending pattern? You can check the Axis Bank IndianOil Credit Card to understand its rewards, fees, and eligibility in detail.

2. IndianOil RBL Bank XTRA Credit Card

This card is built for users who regularly refuel at IndianOil pumps and want reward flexibility across multiple categories. It provides both a surcharge waiver and high reward rates on fuel, dining, and groceries, making it a solid all-rounder.

Features & Benefits

• Up to 5% savings on IndianOil fuel purchases
   
• 1% fuel surcharge waiver at all IndianOil pumps
   
• Accelerated rewards on dining, groceries, and online spending
   
• Free IndianOil XTRAREWARDS account

Reward Points Structure

• 20 reward points per ₹150 on IndianOil fuel
   
• 5 reward points per ₹150 on other selected categories
   
• Reward redemption available for fuel, vouchers, or products

Fees & Charges

• Joining fee: ₹1,500 + GST 
   
• Annual fee: ₹1,500 + GST 
   
• Fee waived on ₹2,75,000 annual spends

3. IndianOil Kotak Credit Card

This fuel card offers stable savings for users loyal to IndianOil pumps. The card’s value proposition revolves around co-branded reward points, surcharge waivers, and milestone benefits that encourage regular usage.

Features & Benefits

• Up to 4% savings on IndianOil fuel spends
   
• 1% fuel surcharge waiver on eligible transactions
   
• Bonus reward points on departmental and grocery purchases
   
• Affordable and beginner-friendly fuel card

Reward Points Structure

• 24 reward points per ₹150 fuel spend at IndianOil
   
• 3 reward points per ₹150 on other retail spends
   
• Points convertible to IndianOil XTRAREWARDS points

Fees & Charges

• Joining fee: ₹449 + GST
   
• Annual fee: ₹449 + GST
   
• Annual fee waived on yearly spends of ₹50,000

4. SBI BPCL Credit Card

The SBI BPCL Credit Card is one of India’s most popular fuel surcharge waiver credit cards, designed for users who prefer Bharat Petroleum (BPCL) petrol pumps. It offers industry-leading reward points and strong value back on fuel spends.

Features & Benefits

• Up to 4.25% value back on BPCL fuel purchases
   
• 1% fuel surcharge waiver on eligible transactions
   
• 13× reward points on fuel spends at BPCL
   
• Access to BPCL's loyalty benefits

Reward Points Structure

• 13 reward points per ₹100 spent at BPCL pumps
   
• 5 reward points per ₹100 on groceries, dining, and movies
   
• Points redeemable for fuel at BPCL outlets

Fees & Charges

• Joining fee: ₹499 + GST
• Annual fee: ₹499 + GST
• Renewal fee waived on annual spends above ₹50,000

5. ICICI Bank HPCL Super Saver Credit Card

The ICICI HPCL Super Saver Credit Card is designed for users who prefer HPCL fuel stations and want the highest direct cashback-based savings. When used through ICICI Bank FASTag/HPCL Pay/ICICI Pay, the card maximises reward and cashback benefits on fuel.

Features & Benefits

• 4% cashback on HPCL fuel transactions
   
• 1% fuel surcharge waiver at HPCL pumps
   
• Additional rewards on utility bills and groceries
   
• Complimentary PAYBACK rewards programme

Reward Points Structure

• 5 PAYBACK points per ₹100 on HPCL purchases
   
• 2 PAYBACK points per ₹100 on utilities and groceries
   
• Points redeemable for free fuel or merchandise

Fees & Charges

• Joining fee: ₹500 + GST
   
• Annual fee: ₹500 + GST
   
• Annual fee waived on spends of ₹1,50,000
   

6. BPCL SBI Card Octane

The BPCL SBI Card Octane is the premium variant for BPCL users, offering one of the highest reward rates among fuel credit cards in India. It is suitable for heavy commuters who frequently spend at BPCL outlets and want maximum reward mileage.

Features & Benefits

• Up to 7.25% value back on BPCL fuel purchases
   
• 1% fuel surcharge waiver across BPCL petrol pumps
   
• Complimentary access to airport lounges
   
• Higher reward rate on dining and departmental spending

Reward Points Structure

• 25 reward points per ₹100 spent at BPCL
   
• 10 reward points per ₹100 on dining and departmental stores
   
• Points redeemable directly for fuel at BPCL outlets

Fees & Charges

• Joining fee: ₹1,499 + GST
• Annual fee: ₹1,499 + GST
• Renewal fee waived on annual spends of ₹2,00,000

Fuel Credit Cards Comparison Table

Card Name	Fuel Savings / Value Back	Annual Fee
IndianOil Axis Bank Credit Card	Up to 4% on IndianOil fuel + 1% surcharge waiver	₹500 (waived on ₹50,000 annual spends)
IndianOil RBL Bank XTRA Credit Card	Up to 5% on IndianOil fuel + 1% surcharge waiver	₹500 (waived on ₹1,00,000 annual spends)
IndianOil Kotak Credit Card	Up to 4% on IndianOil fuel + 1% surcharge waiver	₹449 (waived on ₹50,000 annual spends)
BPCL SBI Card	Up to 4.25% on BPCL fuel + 1% surcharge waiver	₹499 (waived on ₹50,000 annual spends)
ICICI Bank HPCL Super Saver Credit Card	Up to 4% cashback on HPCL fuel + 1% surcharge waiver	₹500 (waived on ₹1,50,000 annual spends)
BPCL SBI Card Octane	Up to 7.25% on BPCL fuel + 1% surcharge waiver	₹1,499 (waived on ₹2,00,000 annual spends)

How to Choose the Best Fuel Credit Card?

Choosing the right fuel credit card should depend on your fuel type, spending habits, and preferred petrol pump network.

Key Factors to Consider

1. Your Fuel Provider Preference
 If you consistently fill at IOC, BPCL, or HPCL, choose a co-branded card for maximum rewards.

2. Monthly Fuel Spending
 If your monthly spend is below ₹3,000, a basic waiver card is enough.
 For ₹4,000–₹6,000, choose cashback or accelerated rewards cards.

3. Reward Redemption Flexibility
 Some cards only allow redemption at partner pumps; others allow vouchers or statement credits.

4. Waiver Limits and Reward Caps
 A card with a ₹100 monthly waiver may not be ideal for high-usage drivers.

5. Annual Fees and Fee Waiver Conditions
 Many cards waive annual fees on spending ₹50,000–₹1,00,000 annually.

Eligibility Criteria to Apply for a Fuel Credit Card

Although requirements vary slightly across banks, most conditions are similar.

Basic Eligibility

1. Age: 21–65 years
2. Income Requirement:
   Salaried: ₹20,000–₹25,000 minimum
   Self-employed: ₹2–₹5 lakh annual income (minimum)
3. Citizenship: Indian resident
4. Credit Score: 700+ for smooth approval
5. Employment Stability: 6–12 months of work experience

Higher-end cards may require a credit score above 750 and higher income levels.

How to Apply for a Fuel Credit Card?

You can easily apply for a petrol card online through any bank’s website or app. The digital process is faster and often provides instant approval for eligible users.

Step-by-Step Process

1. Visit the Official Website
   Go to the bank’s credit card section and choose a fuel credit card or co-branded petrol card.
    
2. Check Eligibility
   Enter basic details like age, city, and income to check if you qualify.
    
3. Fill the Application Form
   Provide PAN, mobile number, email ID, address, and income details.
    
4. Complete e-KYC Verification
   Aadhaar OTP-based e-KYC enables instant verification.
    
5. Upload Required Documents
   Salary slips, bank statements, or ITR (for self-employed users).
    
6. Get Approval Status
   Banks may offer instant approval if you meet all criteria.
    
7. Receive Your Credit Card
   Physical card is delivered within 5–7 working days, depending on location.

If you prefer offline mode, you can apply by visiting the nearest branch with identity and income documents.

Conclusion

A fuel credit card is one of the smartest ways to save money on routine petrol and diesel expenses. With surcharge waivers, accelerated rewards, and co-branded benefits, these cards help reduce monthly fuel bills significantly. The key is to choose a card that aligns with your fuel brand preference, monthly spending, and lifestyle needs. Whether you want surcharge waivers or maximum cashback, India offers multiple strong options for different user profiles. Select wisely, check eligibility beforehand, and apply online for the fastest approval.

To make a more informed choice, many users compare fuel cards alongside other credit cards in India to see how fuel savings fit into their overall spending. Finology Select makes this easier by helping you compare card fees, rewards, and usage benefits in one place.

FAQs

1. What is a fuel surcharge on a credit card?
A fuel surcharge is a 1% fee added when you purchase fuel using a credit card. With GST included, the effective charge becomes about 1.18%. Many cards offer a fuel surcharge waiver on transactions within specific limits.

2. Which is the best fuel credit card in India right now?
Top choices include the IndianOil Axis Bank Credit Card, IndianOil RBL Bank XTRA Credit Card, BPCL SBI Card, BPCL SBI Card Octane, and ICICI HPCL Super Saver Credit Card. The best fuel credit card in India depends on your preferred pump network and monthly spending.

3. Can I get benefits at all fuel stations?
Yes, if you use a universal cashback card. But co-branded petrol credit cards usually give maximum rewards only at partner fuel pumps like IndianOil, HPCL, or BPCL.

4. How much can I save monthly using a fuel credit card?
Users typically save between ₹100 and ₹500 per month, depending on the surcharge waiver cap, reward rate, and monthly fuel spending. High-usage car owners can save even more with the best petrol credit cards.

5. Can I apply for a petrol card online?
Yes, you can apply for a petrol card online through the bank’s website or app. The process includes e-KYC, online documentation, and instant eligibility checks.