Which is the best fuel credit card ?

First thing, identify your brand loyalties, if any. Choosing the right card for you is simpler if you go with your preference for BPCL, HPCL, or Indian Oil. Besides, if you are flexible with your brand choice based on the highest value back, you can consider the IndianOil RBL Bank XTRA Credit Card, as it offers an impressive 8.5% value back. The co-branded fuel benefits on the cards are as follows:

IndianOil RBL Bank XTRA Credit Card: Up to 8.5% valueback

• 15 fuel points per Rs. 100 spent at IndianOil fuel stations (Maximum 2,000 fuel points per month)
• 1% fuel surcharge waiver of up to Rs. 200 every month
• 1 fuel point = Rs. 0.5

BPCL SBI Octane: Up to 7.25% valueback

• 25 rewards per Rs. 100 at BPCL fuel, & Lubricants (Up to 2500 points per billing cycle)
• 1% fuel surcharge waiver at BPCL pumps
• 4 Reward Point = Rs. 1

IDFC FIRST Power Plus: Up to 6.5% valueback

• 30 rewards per Rs. 150 on HPCL fuel (up to 2,400 rewards in a statement cycle)
• 6 Happy Coins per Rs. 100 on fuel spends through HP Pay App (up to 600 Happy Coins per month)
• 1 reward point/Happy coin = Rs. 0.25
  

IndianOil Axis Bank: Up to 5% valueback

• 20 rewards per Rs. 100 spent at IOCL fuel pumps (capping on transaction value of Rs. 5,000)
• 1% fuel surcharge waiver at all fuel stations

*Note: The estimated value back percentage is calculated as per the earning and redemption values offered on the cards. Click here to check the value back calculation.

The latest launch in the fuel cards segment, the IndianOil RBL Bank XTRA credit card, currently offers the highest return on fuel in comparison to the other three cards. It is closely followed by BPCL SBI Card Octane, which dominated the best fuel cards chart for a long time.

In comparison, the Indian Oil Axis Bank card extends benefits to non-partnered fuel spends as well, by not limiting the fuel surcharge waiver to IOCL fuel pumps. But this cannot be a differentiating factor to choose a card for all-round fuel benefits. Thus, users will have to stick to brand preferences to derive the maximum valueback on their fuel spends.

To further add to this argument, here is an estimated monthly savings on co-branded fuel spends.  Let’s assume you spend Rs. 10,000 a month on fuel at specific co-branded fuel stations. You will earn benefits via the accelerated fuel rewards as shown in the table below:

Note: The per reward value may across other redemption options.

Considering a monthly spend of Rs. 10,000 on fuel, Indian Oil RBL Bank Xtra clearly offers the maximum valueback. However, for choosing the best card, consider not just the valueback but also the rewards capping. For instance, the leading cards here, IndianOil RBL Xtra and BPCL SBI Octane, come with a capping of 2,000 and 2,500 rewards p.m. on fuel transactions. Thus, users spending beyond a certain value will earn limited rewards irrespective of the amount.

For instance, with the RBL variant, those spending anywhere beyond Rs. 13,500 will earn 2,000 fuel points, no matter how big the spend value. A similar capping is also applicable on IDFC FIRST HPCL Power+ of 2,400 reward points. But, instead of reward points, Indian Oil Axis Bank implies a cap on the maximum transaction value of Rs. 5,000. However, the card lets you earn rewards on the base rate after exceeding the monthly cap.

Benefits on non-fuel credit around everyday needs, might not be too important for users owning multiple cards. But, very impactful for those who want to own a single credit card. Some non-fuel benefits on the card are as follows:

IndianOil RBL Bank XTRA Credit Card:

• 2 fuel points per Rs. 100 on shopping, dining and other spends (except rent, utilities, insurance)
• 1000 fuel points per quarter on reaching milestone spends of Rs. 75,000

BPCL SBI Octane:

• 10 reward points per Rs. 100 spent at dining, Departmental Stores, grocery & movies (Up to 7500 points per month)
• 1 reward point per Rs. 100 spent on other retail transactions (Except mobile wallet upload & non-BPCL fuel spends)
• 25 reward points per Rs. 100 spent on Bharat Gas (Up to 500 points per billing cycle)
• 4 complimentary visits per calendar year to domestic VISA lounges in India (Maximum 1 visit allowed per quarter)

IDFC FIRST Power Plus:

• 30 rewards per Rs. 150 spent on grocery & utility spends (capped at maximum transaction value of Rs. 2,000 every month)
• 30 rewards per Rs. 150 spent on IDFC FIRST FASTag recharge (capped at maximum transaction value of Rs. 1,000 every month)
• 3 reward points per Rs. 150 spent on UPI and other retail transactions
• 25% off on movie tickets up to Rs. 100, once every month
• 1 complimentary visit to domestic airport lounge once every calendar quarter via Power Plus credit card on minimum monthly spends of Rs. 5,000.

Indian Oil Axis Bank Credit Card:

• 5 reward points per Rs. 100 spent on online shopping (eligible on transaction value capped at Rs. 5,000)
• 1 reward point per Rs. 100 spent on other retail transactions
• Up to 10% discount on movie ticket bookings via BookMyShow (up to Rs. 100 per month)
• Up to 15% off on dining (up to Rs. 1,000 in a month)

Some things to note are:

1. Unlike the other two cards, IDFC FIRST Power+ Credit Card offers no benefits on dining. Thus, the value back is derived out of the basic reward structure of 3X rewards on every Rs. 150 spent.

2. Both SBI BPCL Card Octane and IDFC FIRST HPCL Power+ Credit Card offer accelerated rewards on grocery shopping. Indian Oil Axis Bank Credit Card, on the other hand can offer you grocery benefits via 5X rewards offered on online shopping. For those who prefer offline grocery shopping, this could be disappointing.

3. IndianOil Axis Bank Credit Card & IDFC FIRST HPCL Power+ offer direct discounts up to 10% and 25% respectively on booking movie tickets. However, even when there is a difference in the rate, the maximum capping is the same at Rs. 100 per month. SBI BPCL Octane, offers the least valueback comparatively, even at a decent reward rate for this category.

4. Indian Oil Axis Bank Credit Card also offers accelerated rewards on online shopping, which other two cards do not offer. For these two cards, online shopping yields the same benefits as any other retail spend.

5. In comparison to the majority of cards in this list, RBL Bank Xtra does not offer any rewards on utility bill spends. Additionally, no accelerated benefit is offered on other everyday categories like dining, shopping, movies etc. The good part however is that users can earn base rewards on these categories without any capping.

To help you further we have framed an illustration to show estimated monthly savings on co-branded fuel spends & on all spends.

Note: The above mentioned details are illustrated subjectively. Deriving maximum value back depends upon your spending preferences and patterns. For instance, for IndianOil Axis Bank Credit Card, we have assumed grocery shopping as done ‘online’, to derive the maximum value back, via 5x rewards for online shopping. For offline grocery shopping, the benefits may differ. Similarly, we have not calculated returns for utility bill payments. If you also spend on utilities with your card, you might earn the highest value back via IDFC FIRST Power+ Card, as it offers 30 points on every Rs. 150 in this category.

Welcome Benefit: On payment of joining fee or card activation, all  cards offer welcome benefits as shown below:

Clearly, for welcome benefits, IDFC FIRST HPCL Power+ Credit Card has an edge over all cards. The card’s activation benefit surpass the joining fee by a huge margin. Besides, the benefits are not limited to fuel, but across retail transactions, online food ordering, etc.

Annual Fee Waiver Condition: The fee waiver condition on these cards are:

• IndianOil RBL Bank XTRA Credit Card: Annual fee- Rs. 1,500 (waived off on annual spends of  Rs. 2.75 Lakh)
• BPCL SBI Card Octane: Annual fee- Rs. 1,499 (waived off on annual spends of Rs. 2 Lakh)
• IDFC FIRST Power+: Annual fee- Rs. 499 (waived off on annual spends of Rs. 1.5 Lakh)
• IndianOil Axis Bank : Annual fee- Rs. 500 (waived off on annual spends of Rs. 50,000)

Amongst these, Axis Bank IndianOil Credit Card, comes with a lowest annual fee waiver condition. Keeping in view the decent benefits, particularly accelerated rewards around fuel and online shopping, the spend target is easy to meet. Thus, even when you spend around Rs. 4,200 a month, you can meet this waiver.

Milestone Benefit: Considering a low fee, no milestone benefits offered on IDFC FIRST Power+ Credit Card and IndianOil Axis Bank Credit Card, is justified. However, the SBI BPCL Octane Credit Card comes with a milestone benefit on annual spends of Rs. 3 Lakh. You can choose an e-Gift Voucher worth Rs. 2,000 from Aditya Birla Fashion Or Yatra Or Bata/Hush Puppies. Besides, if you also consider the annual fee waiver condition (on spending Rs. 2 Lakh), you get a total benefit of Rs. 3,500 on spending Rs. 3 Lakh in a year.

IndianOil RBL Bank XTRA credit card also offers milestone benefits via bonus rewards – 1,000 fuel points on quarterly milestone spends of Rs. 75,000.

You can consider getting a card of your choice as per the following:

Consider choosing Indian Oil RBL Bank XTRA credit card, if:

• You mostly visit IndianOil fuel pumps
• You own another credit card with accelerated benefits on non-fuel lifestyle categories
• You dont’ mind paying an annual fee of Rs. 1,500
• You dont’ mind putting maximum spends on this card to meet annual fee waiver criteria of Rs. 2.75 Lakh

Consider BPCL SBI Card Octane, if:

• You prefer visiting BPCL petrol pumps for fuel and Bharat Gas at home
• You use your credit card for grocery shopping, majorly at departmental stores
• You frequently dine out and go for movies
• 1 lounge access visit in a quarter is sufficient for you
• You dont’ mind paying an annual fee of Rs. 1,499
• You will be able to spend around Rs. 3 Lakh a year (around Rs. 25,000 a month), to avail the milestone benefit

Consider IDFC FIRST Bank HPCL Power+ Credit Card, if:

• You are looking for a low annual fee fuel credit card
• HPCL is your preferred fuel outlet
• You can utilize the reward benefit on HPCL LPG
• You can switch to HP Pay App for payment
• You spend a lot on grocery using your credit card
• You want a card with accelerated rewards on utility bill payments & FASTag recharge
• You can spend around Rs. 1.5 Lakh in a year to avail the annual fee waiver
• You want never expiring reward points for your purchases

Consider IndianOil Axis Bank Credit Card, if:

• You want a low annual fee fuel credit card
• You mostly visit IndianOil fuel pumps
• You go for movies at least once a month
• You frequently dine out
• You majorly shop online
• You can switch to online grocery shopping, instead of offline
• You are a not a high spender, and can spend up to Rs. 50,000 in  a year to meet the fee waiver