Home / Money / Personal Finance /  Fuel credit card can help you save if you are loyal to the brand

At a time when petrol and diesel prices are surging, co-branded fuel cards can help save some money.

The way fuel cards work is straightforward. Cardholders get higher points for spends on fuel. They can use the points for different purposes, including refuelling. All such cards also offer fuel surcharge waivers.

IndianOil HDFC Bank Credit Card, for example, offers 5% of spends as fuel points at IndianOil outlets. The user also gets enrolled in IndianOil XTRAREWARDSTM Program.

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BPCL SBI Card Octane offers 25 reward points on every 100 spent at BPCL outlets, and IndianOil Citi Credit Card gives four points for every spend of 150 at IndianOil outlets.

There are other benefits as well, depending on the category of the card. For example, BPCL SBI Card Octane offer lounge access. These cards offer rewards for shopping, spending beyond a specific limit, and so on. There could also be discounts at partner merchants.

Saving on petrol and diesel costs using co-branded fuel credit cards is possible only when you are loyal to the specific brands and have a high spend on fuel. If you have an Indian Oil co-branded card, for example, you must ensure that all your refuelling happens at the company’s outlet. The same holds for other brands.

Co-branded fuel credit cards could also have some caveats. According to HDFC Bank’s website, customers can earn 5% of spends as fuel points. However, the maximum fuel points per month are restricted to 250 in the first six months. After six months, the maximum fuel points an individual can earn is 150 a month.

All these cards also have an annual fee, which issuers waive off if the cardholder spends beyond the specified limit. Before applying for any one of these cards, know the terms and conditions so that there are no surprises later.

(Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts)

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