Are Fuel Credit Cards Worth It?

Credit Card issuers lately have offered co-branded Fuel Credit Cards for people who spend a lot on fuel transactions. With increasing demands of fuel and the price hike, people have started using these cards on a daily basis to fuel up their vehicle tanks. A lot of banks like ICICI, SBI, Kotak Mahindra, HDFC, and more offer fuel credit cards in partnership with different fuel companies and corporations. BPCL SBI Card Octane is a fuel credit card that most people prefer these days. The card comes with a host of benefits for transactions made at BPCL fuel stations.

Now here the real question arrives of whether these Fuel cards really provide any benefit or if everything is just a showcase with no real discounts. Let’s find out:

Benefits and features

Most of these fuel cards come in at a low joining and annual fee and offer the following benefits to its user:

  • More fuel Surcharge Waiver on fuel transactions than regular credit cards
  • Dedicated fuel discounts and cashback offers
  • Partnered fuel Station discounts including more cashback on points
  • Can be used at regular shopping outlets and on online platforms

Benefits can vary as different card issuers have different ways to provide discounts. Generally partnered Fuel cards provide the maximum benefit when used at partnered fuel stations. The offers can include more cashback and surcharge waivers along with gift vouchers. One can also convert the card’s bill into EMIs for easy fuel payments and to ease the Debt Burden.

Offering a lot of benefits, these cards can empty your wallets if they are not used responsibly or if misused. Following are some points to keep in mind when getting a Fuel Bound Credit Card:

  • Not to overuse the credit card and get carried away with discounts and surcharge waiver
  • Over-utilizing the credit can harm your credit score
  • If used at non-partnered Petrol Pumps, it won’t be able to provide the full advantage of a fuel credit card.
  • Though the card can be used on other transactions as well, it won’t be able to provide any rewards or cash back for the same

Bottom Line

If you spend a lot on fuel transactions, you should consider getting a fuel credit card for yourself. Remember that these cards provide discounts only when used at partnered fuel stations only, otherwise, they would act like a normal credit card. Do not consider a fuel card if you rarely spend on fuel as these cards would be of no use. a



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