Why fuel cashback rewards matter With gas prices remaining high in 2025, each litre saved matters. Cashback or surcharge waiver credit cards on fuel expenses can make daily commutes cheaper month on month. These cards normally give back a portion of the transaction value as cashback or reward points, to be used later, essentially reducing your fuel expenses without altering your driving patterns.
Knowing how cashback on fuel works Most fuel credit cards offer a flat cashback rate or bonus rewards for buying fuel at specific partner petrol pumps. They generally waive the usual 1% fuel surcharge on transactions, which is otherwise an added cost on all transactions. However, the benefits often have a monthly cap – for example, cashback will be coterminous to a certain value or only on transactions of up to a specified value, for example, ₹500 to ₹4,000.
Best practices to maximize savings For best returns on these offers, choose a fuel card that is for your favorite fuel chain, i.e., IndianOil, BPCL, or HPCL. Picking the same chain of pumps most of the time yields the highest rewards. Avoid splitting transactions to stay under eligibility limits, and make arrangements for purchases of fuel to get highest rewards in a month. It also makes sense to use a fuel card for fuel purchases only so that savings are easily identifiable and no reward redemption is missed.
Comparing fuel credit cards Best options in 2025 are co-branded cards like IndianOil Axis Bank Credit Card, BPCL SBI Card Octane, and HPCL ICICI Bank Credit Card. These offer 3%–5% equivalent cashback on fuel expenses, with surcharge waivers. A few of them offer other benefits like dining or shopping discount too, and hence can be utilized for purposes beyond fuel saving. Look beyond cashback percentages while choosing, but also annual fees, redemption flexibility, and where the rewards can be redeemed.
Avoiding hidden costs Even though cashback on fuel is a great benefit, it can be offset by annual fees or interest charges if the amount due is not settled at the close of each month. Some cards have minimum spend across all categories before you can take advantage of fuel benefits. To save money, ensure you settle your bills timely, cash in on rewards in a timely fashion, and pick a card that aligns with how you spend money without wasting extra money.
