India is among the highest fuel-consuming markets in the world with around 4 million barrels of oil consumed per day. About 82% of the consumed fuel is imported from different countries. As such, fuel prices are continuously rising due to the number of international taxes that are applied to them.
The average Indian driver consumes about 22.55 litres of fuel every year. About 20% of the income in an average Indian household is spent on commuting. Hence, fuel credit cards are gaining popularity among consumers as a beneficial option to reduce fuel bills.
Here are 5 ways in which a fuel card can help to save on fuel costs and generate significant savings.
- Best prices
Fuel card issuers offer discounts at partnered fuel stations or brands. Availing fuel at a cheaper rate automatically generates significant savings for the cardholders.
Note that fuel card issuers may charge an annual fee for the benefits they provide. The cardholders need to determine if the savings from availing fuel at a cheaper rate is greater than the annual fee.
- Cash back on credit card spendings
Some fuel cards offer cash back for customers on fuel purchase. It means that along with reward points a consumer will also get a fixed amount refunded back to the account or added to the credit limit for every transaction. This refunded amount can be used later to reduce the expenses for the fuel.
Cardholders may need to make transactions above a minimum amount value to avail this benefit. Card issuers usually offer cash back of about 2.5% to 3% on fuel purchases.
- Surcharge waiver
Surcharge waiver is another feature that can help cardholders to generate savings on fuel expenses. Usually, card issuers charge a transaction fee called surcharge when a cardholder buys fuel. Fuel cards that provide surcharge waiver come with a transaction fee significantly less than others. Card issuers usually provide this waiver to offer savings on fuel expenses for cardholders.
The Bajaj Finserv RBL Bank SuperCard is the best credit card for fuel that offers surcharge waiver up to Rs. 100 per month. Some of the other benefits that it offers are-
- Interest-free ATM cash withdrawals for up to 50 days.
- Robust security features.
- Industry-leading reward point program on every transaction.
- Discounts on movie tickets.
- Emergency loan on cash limit without interest up to 90 days.
- Instant approval and affordable charges.
They also offer pre-approved offers to make the process to avail such cards simple and less time-consuming. Pre-approved offers are available on home loans, business loans, personal loans and various other financial products. You can check out your pre-approved offer by sharing a few necessary details.
- Extra reward points through fuel card tie-ups
Some fuel card issuers have preferred partners or fuel stations. The number of reward points that can be obtained from fuel expenses can be doubled or tripled if cardholders purchase fuel from select fuel stations. These extra rewards can be earned in addition to cash backs and surcharge waivers.
The reward points can be later used to pay for fuel. It will reduce the expenses significantly and ensure that a cardholder can generate enough savings.
- Option to redeem reward points earned previously
Cardholders can use the reward points earned previously to pay for fuel. The rewards can be earned by buying flight tickets, groceries, movie tickets, etc. Cardholders can also redeem the reward points that are earned as joining bonus.
Cards such as the Bajaj Finserv RBL Bank SuperCard offers 20,000 reward points as a joining bonus. Also, cardholders can buy fuel of Rs. 500 on redeeming every 2000 reward points. Therefore, they can get fuel of Rs. 5,000 by redeeming just the joining bonus.
Fuels cards provide various benefits on fuel expenses including the ones mentioned above. You must know how to use a credit card wisely to avail maximum benefits.