Fuel expenses have a direct impact on your monthly budget, especially if you are constantly on the move. If you spend regularly on fuel, you are probably looking for fuel credit cards to ease the burden. However, before applying for a credit card that helps you save on fuel costs, it is best to understand how to choose one, learn about cashback and reward points, and what to look out for. Here is what you need to know.
How Do Fuel Credit Cards Work?
Fuel credit cards are designed to turn your regular fuel purchases into savings. Instead of paying full price at the pump, you earn rewards or benefits every time you refuel, helping you lower your overall fuel costs over time. This way, you can even reduce the impact of fluctuating fuel prices as the rewards help you save a little each time you refuel.
To understand this better, let us look at how IDFC FIRST Bank's fuel credit cards work. Whenever you use an IDFC FIRST Bank FIRST Power or FIRST Power+ credit card at an eligible Hindustan Petroleum Corporation Limited (HPCL) fuel station, you earn rewards that help you save on your fuel expenses. With savings of up to 6.5% on HPCL fuel purchases, these cards can reduce the overall amount you spend on fuel. IDFC FIRST Bank fuel credit cards offer annual savings worth up to 175 litres of fuel, depending on the variant you choose and your monthly fuel spends.
How Does This Work for You?
Let us understand the benefit of a fuel credit card with the help of an example. Vinay, a 34-year-old sales professional, uses his car to commute in and around the city of Mumbai. On days when he needs to work towards his sales target, he commutes between 10 and 300 kilometres. He is on the road for 15 of his 20 working days in a month, and the rest are spent working from a co-working space 30 kilometres from home. He also takes his family out on short trips every other weekend. Considering all of his travel, he spends a significant amount on fuel every month.
Here is how his FIRST Power+ credit card from IDFC FIRST Bank helps him:
- HPCL Fuel: Monthly spend ₹12,000 (capped), reward rate 5% (rewards) + 1.5% (HP Pay), monthly value-back ₹780.
- Excess Fuel: Monthly spend ₹8,000, 3X rewards (₹0.5%), value-back ₹40.
- Grocery & Utility: Monthly spend ₹2,000 (capped), 5% value-back, ₹100.
- IDFC FIRST FASTag: Monthly spend ₹1,000 (capped), 5% value-back, ₹50.
- Other (UPI/Retail): Monthly spend ₹5,000, 3X rewards (₹0.5%), ₹25.
- Welcome Bonus: One-time, FIRST fuel transaction, ₹500 (Month 1).
With a total spend of ₹28,000 in the first month, he saves ₹1,495. This works out to 5.34% of his total credit card spend for the month. Even with a slightly more conservative return of ₹1,005 monthly, assuming a monthly spend of ₹30,000, the benefits are:
- HPCL Fuel: ₹12,000, 5% (rewards) + 1.5% (HP Pay), ₹780.
- Grocery & Utility: ₹2,000, 5% (30X rewards), ₹100.
- IDFC FIRST FASTag: ₹1,000, 5% (30X rewards), ₹50.
- Other (UPI/Retail): ₹15,000, 0.5% (3X rewards), ₹75.
- Total Monthly: ₹30,000, effective return 3.3%, ₹1,005.
While the amount may seem small against the monthly spending, it builds up over the year and adds to your savings.
Other Benefits of IDFC FIRST Bank Fuel Credit Cards
The FIRST Power and FIRST Power+ fuel credit cards offer a wide range of shopping benefits and discounts on groceries to help you keep your spending in check:
- Transactions on UPI allow up to 3X rewards.
- Year-round offers on shopping across 300+ merchants.
- Free roadside assistance should you need it.
- Accident and liability covers that provide peace of mind at no additional cost.
Card features, reward rates, and fees are subject to change. Please refer to the official IDFC FIRST Bank website for the latest information.
Takeaway
Fuel credit cards can offer meaningful value when used the right way. The FIRST Power and FIRST Power+ credit cards from IDFC FIRST Bank are great options to start your fuel credit card journey, with all the benefits they offer. While rewards can be appealing, using the card without a plan might lead to higher-than-expected spending. A little planning and steady use can help you get the best out of your fuel credit card.
