In a country where daily commutes, logistics, and weekend getaways depend heavily on personal vehicles, fuel expenses often eat up a big chunk of the monthly budget. But here’s the good news—you can actually save money on petrol and diesel using credit card cashback. With the right fuel credit card and a few smart spending strategies, these unavoidable costs can turn into real, recurring savings. By leveraging the latest cashback and reward schemes that banks and fuel partners are offering in 2025, your credit card can become the ultimate gas-saving sidekick.
Also Read: Six Best SBI Credit Cards: Features, Eligibility, and How To Apply
As a tech blogger and budget-conscious content creator, I break down for you how to use credit card rewards to slash your fuel bills, what cards work best in India this year, and pro-tips to maximize every rupee you spend at the pump.
Why Use Credit Cards for Fuel Purchases in 2025?
Fuel credit cards aren’t just a marketing gimmick—they’re tailored to the realities of the rising cost of petrol and diesel in India. These cards reward you in two main ways:
- Fuel surcharge waiver: Nearly all cards waive the pesky 1%–2.5% surcharge added to card-based fuel transactions.
- Direct cashback or rewards: You earn a percentage of your spend back as cashback or redeemable reward points, effectively lowering your net cost for every liter you fill.
When you stack surcharge waivers with cashback + rewards, savings of 4%–8% (or more, depending on your card and usage) aren’t unusual.
How Much Can You Save Using Credit Card Fuel Offers?
Let’s do a quick calculation:
- Monthly fuel spend: ₹5,000
- Typical card rewards (cashback + surcharge waiver): ~5%
Monthly savings: ₹250
Yearly savings: ₹3,000
This doesn’t even account for welcome bonuses, dining perks, and spend-based annual fee waivers available on many cards.
India’s Best Fuel Credit Cards for 2025 (Comparative Overview)
Here are some of the best-performing options this year, with joining/annual fees and calculated maximum fuel savings.
| Credit Card | Annual Fee | Fuel Partner | Cashback/Rewards on Fuel | Surcharge Waiver | Welcome Bonus | Notable Perks |
| ICICI HPCL Super Saver | ₹500 | HPCL | 4% cashback (max ₹200/mo), added 1% | 1% (₹4,000/txn cap) | 5% on mobile, utility bills | Departmental store rewards, annual fee waiver on ₹1 lakh spend |
| IndianOil Axis Bank | ₹500 | IOCL | 4% reward points | 1% (up to ₹50/mo) | 100% back up to ₹250 in first 30d | Dining offers, no fee after ₹3.5L spend |
| IndianOil HDFC Bank Credit Card | ₹500 | IOCL | Up to 6% value back | Yes | Bonus points | 5% back on groceries, bills |
| IndianOil RBL XTRA Credit Card | ₹1,500 | IOCL | Up to 8.5% rewards | 1% (₹200/mo) | ₹100 cashback & 2,000 points | Lounge access on spends |
| BPCL SBI Octane | ₹1,499 | BPCL | 25X points/₹100 (BPCL) | 1% (cap ₹4,000/txn) | 6,000 welcome points | Extensive rewards on BPCL and partner outlets |
Note: Always check the latest T&C, as banks revise features periodically. Some annual fees are waived off if you hit a spend milestone.
How to Get the Most Out of Fuel Credit Cards: 10 Pro Tips
1. Choose a Card That Matches Your Regular Fuel Pump
Most cards are partnered with specific oil companies (like IOCL, BPCL, or HPCL) and offer increased rewards at those outlets. Pick the one nearest or most convenient for your routine. For example, IndianOil Axis and IndianOil HDFC cards give top value at IOCL outlets.
2. Always Use the Card for Fuel Purchases Over ₹400
Most surcharge waivers and rewards only apply to transactions above a set threshold, usually ₹400. Avoid multiple small refills.
3. Use Fuel Apps or Merchant Swipe Machines
Cards such as ICICI HPCL Super Saver give extra rewards if you pay through the HP Pay app or use an ICICI swipe machine at HPCL fuel stations. Read your card’s benefit guide for these “hidden” multipliers.
4. Time Your Refueling for Bonus Point Days or Offers
Banks run limited-time promotions offering boosted points or cashback on specific days. Stay subscribed to your issuer’s SMS or app notifications.
5. Calculate Your Annual Savings vs. Card Fee
Some cards, like RBL XTRA or SBI BPCL Octane, have higher annual fees. If your yearly fuel costs are high, the extra rewards often outweigh the fee. For moderate users, Axis/ICICI/HDFC cards bring solid value with lower fees and easy annual fee waivers[1][3][4].
6. Keep an Eye on Cashback/Reward Cap
Every card has a monthly limit to how much cashback or how many bonus points you can earn—plan refuels accordingly so you don’t lose out once the cap is hit.
7. Use Credit Card Fuel Points for Free Fuel
Most reward points earned on fuel cards are best redeemed as free fuel—often at a 1:1 or premium value ratio. Don’t convert points to vouchers or merchandise unless the rate is equally favourable.
8. Bundle Other Spend Categories
Cards like the ICICI HPCL Super Saver and IndianOil HDFC reward you for mobile, utility bills, and grocery spends too. Strategic use maximizes total annual card value.
9. Pay Your Bills in Full—Always
Carrying a balance wipes out the benefit from fuel rewards, as the interest is much greater than your monthly cashback.
10. Watch for Sign-up Bonuses
New users frequently get ₹250–₹1,000 cashback or bonus points for making their first fuel purchase. Make sure to claim these by transacting within the required period post-card activation.
Real-World Example: How Fuel Cashback Works
Let’s say you pick the ICICI HPCL Super Saver Card.
- You spend ₹5,000/month (₹60,000/year) at HPCL stations.
- Earned Cashback: 4% × ₹5,000 = ₹200/month (limited by card cap)
- Fuel Surcharge Waived: 1% × ₹5,000 = ₹50/month
- Other Spends (utilities, groceries): Added bonus rewards!
Total Yearly Value:
(₹200 + ₹50) × 12 = ₹3,000
Potential extra savings from welcome bonus and bill pay = >₹1,000
If the annual fee is ₹500, net savings are still around ₹3,500 for the year. If you spend more or use multiple reward categories, your total value rises even further.
Other Creative Ways to Save Fuel Costs with Cards
- Buy Fuel Gift Vouchers Using Rewards: Some card issuers allow you to buy fuel gift cards using your accumulated points. This can occasionally get you higher value than direct cashback.
- FASTag Recharges and Bill Payments: IDFC, HDFC, and other cards offer rewards for loading FASTag and paying vehicle-related bills—channel these mandatory spends via your card.
- Lifetime Free Credit Cards: Not all fuel rewards cards have annual fees. Consider IDFC First, Axis Neo, or Amazon Pay ICICI (if fuel is a secondary, occasional purchase).
Key Watch-outs Before Using Credit Cards for Fuel Savings
- Not all petrol pumps accept all cards or offer the advertised rewards—always check at the point of sale.
- Ensure the machine you swipe on belongs to the banking partner specified by your card (important for HPCL cards at ICICI POS, etc.).
- Check for blackout periods, monthly/annual limits on cashback, and fine print around fuel surcharge waivers.
- Always pay your bill in full each month—fuel spends do NOT offer a no-cost EMI or interest grace period on some cards.
FAQ: Related to save money on petrol and diesel using credit card cashback
Q: Do these cards work for both petrol and diesel?
Yes, nearly all fuel credit cards reward you for both petrol and diesel spends at eligible partner pumps.
Q: Can I use a fuel card for other spends?
Definitely! Most fuel credit cards also reward you for groceries, utilities, bill payments, and partner dining.
Q: What if my annual fuel spend is low?
If you refuel occasionally or spend less, pick a low/no-fee card like the IndianOil Axis or ICICI HPCL Coral. You still get all the benefits with minimal cost.
Q: Are there cards with lifetime free offers?
Yes—IDFC, Axis Neo, and select ICICI and AU Bank cards run lifetime free promotions with entry-level fuel rewards.
Conclusion: Why Not Let Your Fuel Spend Work for You?
Fuel costs aren’t going down anytime soon, but that doesn’t mean you can’t control how much you spend. With the right card in your wallet, it’s surprisingly easy to save money on petrol and diesel using credit card cashback and rewards. From surcharge waivers to exclusive partner offers, these small benefits quickly add up to thousands of rupees saved each year.
Whether you’re a daily commuter, a college student, or a frequent traveler, making smarter choices at the pump can keep more cash in your pocket. So instead of letting rising prices drain your budget, let your credit card work for you—mile after mile.
Disclaimer: Product features and fees may change—always verify terms with your card issuer before applying.