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Why we need a Fuel Credit Card.

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If you read my previous post you would know that I am a miserly person. If a person of the new generation is so thrifty then you can guess how much price-conscious the people of the older generation of that family would be. But when you are price-conscious, you focus on traditional ways of saving money by finding cheaper, durable products or haggle for lesser prices. What you generally lose on is the things which have either fixed prices with less brand and quality alternatives like Fuel or certain services like government transport.

We have a car which is used sparingly as there is heavy emphasis on walking or using other means of transport. But still we need petrol for the car to run whenever we use it. And that's one area where we have failed to take advantage of the benefits offered by certain credit cards.

The sham of Fuel Surcharge Waivers

If you are content with your credit card for giving you a 1% Fuel Surcharge Waiver, then think again. Generally, the policy for majority of the credit cards is such that you a fuel surcharge waiver in place of reward points. So, you don't get any reward points for fuel purchases. Furthermore, there is Tax on that surcharge which is not waived when the surcharge is waived off. You continue to pay for your fuel plus tax on surcharge without any reward points. That means you are unnecessarily paying extra for your fuel purchases just to get it on credit.

Earn with Fuel Purchases

Now what if I tell you that you can earn in fuel purchases as well? Don't believe me, search online for the term "Fuel Credit Cards in India". You will find numerous options from various banks like SBI, ICICI, HDFC, IndusInd, RBL, Citibank, Standard Chartered, American Express, which offer both the surcharge waiver as well as cashback/statement credit.

As my father is a customer of the ICICI bank, I will focus on the co-branded fuel credit cards offered by the ICICI bank and HPCL namely ICICI Bank HPCL Coral Visa/Mastercard Credit Card and ICICI Bank HPCL Coral Amex Credit Card.

My father has the basic lifetime free (LTF) ICICI Platinum Chip Credit Card as well as the LTF ICICI Coral Credit Card and LTF ICICI Amazon Pay Credit Card. He no longer uses the ICICI Platinum Chip Credit Card. So, I suggested him to ask for an upgrade and get the HPCL co-branded credit card which will give us a fuel credit card. The benefits of these cards are not as good as the actual Coral credit card but they are definitely better than the platinum credit card.

The main benefit of the HPCL co-branded credit cards is that they give 2.5% cashback on top of 1% fuel surcharge waiver. Apart from this, they have other benefits as listed below.

ICICI Bank HPCL Coral Visa/Mastercard Credit Card:
with its PAYBACK rewards programme and partner offers on BookMyShow and Culinery Treats. The be
  • 2.5% cashback savings + 1% fuel surcharge waiver at HPCL pumps
    • Minimum transaction value for cashback - ₹ 500.
    • Maximum transaction value for surcharge waiver = ₹ 4000
    • Maximum Cashback - ₹ 100 (2.5% of ₹ 4000)
  • 2 PAYBACK Points on every ₹100 of non-fuel purchases. 
  • Redeem 2000 PAYBACK Points for fuel worth ₹ 500.
  • Bookmyshow offer: ₹ 100 discount on up to 2 movie tickets per month.
  • 15% savings on dining under Culinary Treats program.
  • Annual Fee -  ₹199 (Waived off on annual spends of ₹ 50000)
ICICI Bank HPCL Coral Amex Credit Card:
  • 2.5% cashback savings + 1% fuel surcharge waiver at HPCL pumps
    • Minimum transaction value for cashback - ₹ 500.
    • Maximum transaction value for surcharge waiver = ₹ 4000
    • Maximum Cashback - ₹ 100 (2.5% of ₹ 4000)
  •  6 PAYBACK points on every ₹100 of fuel purchasesat HPCL. 2 PAYBACK Points on every ₹100 of non-fuel purchases. 
  • Redeem 2000 PAYBACK Points for fuel worth ₹ 500.
  • Bookmyshow offer: ₹ 100 discount on up to 2 movie tickets per month.
  • 15% savings on dining under Culinary Treats program.
  • Lounge Access - 8 per Calender Year
  • Other Amex benefits
  • Annual Fee -  ₹199 (Waived off on annual spends of ₹ 50000)

You can compare the benefits of these cards here. 


Final Thoughts

While I have suggested the ICICI HPCL co-branded card, it is not the best fuel credit card. It is just because my father wants to continue with his relationship with ICICI that this card suits best for him. If you have significant monthly spends on fuel purchases, do search for best credit cards around. If you get them free for lifetime then nothing like it. Otherwise, check their annual fees and the benefits that you will get out of them through you fuel and other spends. If you are in net positive then go for it!

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