Petrol and diesel prices have been skyrocketing in India, taking a huge toll on people’s budgets. Petrol credit cards have emerged as an efficient way to reduce the costs per litre of fuel and provide overall savings on petrol and diesel expenses. As the name suggests, petrol credit cards offer exclusive benefits on fuel spending that regular credit cards do not.
Read on to understand the workings of fuel credit cards, the savings and discounts they provide, and how using them strategically can lead to significant savings annually on your fuel bills.
How Petrol Credit Cards Function
Petrol credit cards are specifically designed for expenditures related to petrol, diesel and other automotive expenses. They are usually co-branded with a particular fuel company and can be primarily used at the co-partner petrol pumps. For example, an HPCL petrol credit card can be used at HPCL outlets.
The card typically has a credit limit ranging from Rs 5,000-10,000, which can be utilised only for fuel and automotive payments. Similar to regular credit cards, you get an interest-free period to repay the bill. Finance charges apply only if you default on repayment. The billing cycle and statements work just like any other credit card.
Exclusive Benefits on Fuel Spending
The biggest benefit of petrol credit cards is that they offer exclusive rewards, discounts, cashbacks and accelerated savings that directly reduce the effective price per litre for customers. Following are the ways these cards help save:
- Cashbacks on Every Liter: Petrol cards provide guaranteed cashbacks on every litre purchased at partner fuel outlets. Depending on usage, this can translate into cashbacks of ₹200-1000 per month, directly reducing fuel costs.
- Additional Discounts: Over and above cashbacks, transactions done using a petrol credit card provide an extra discount of 2%-5% per litre at the partner petrol pumps. Together, they significantly reduce the effective price per litre.
- Accelerated Rewards: Petrol credit cards provide handsome reward points on buying petrol or diesel. The earned rewards can later be redeemed to pay for future fuel purchases, further lowering the price per litre for the customer.
- Loyalty Benefits: Some petrol cards offer additional loyalty benefits, such as free car washes, extra savings on car servicing and repairs at tied-up garages, discounts on insurance renewals, etc.
Strategic Usage for Maximum Gains
To maximise savings using your petrol credit card:
- To get cashback, discounts, and rewards, use the petrol credit card only at the designated partner petrol pumps and garages.
- Pay your credit card bills on time to avoid finance charges that will reduce your overall savings. Most petrol cards provide an interest-free period of 20-50 days. Set up standing instructions for bill payment.
- Accumulate rewards judiciously by using the card for all automobile expenses at tied-up garages and redeeming them only when you get the best redemption rate.
- Activate and register for online account access to monitor expenses, receive instant discounts on digital payments, and set payment-due alerts.
- Choose a petrol credit card that fits your usage. For example, cards with higher cashbacks work for those with monthly fuel bills over ₹5,000. Check applicable charges before applying.
Conclusion
Petrol credit cards, with their customised offerings, can provide tremendous savings on automotive expenses. The discounts, cashbacks, and accelerated rewards they offer directly bring down the effective price paid per litre of petrol or diesel, saving you several thousand rupees annually.
Choosing the right EMI card tailored to your usage patterns and using it strategically can significantly reduce your petrol bills. So, if rising fuel prices are burning a hole in your pocket, get a suitable petrol credit card and start saving every time you tank up!
