Every time you swipe your credit card to pay for petrol or diesel, you might be paying more than just the fuel cost. That extra fee on your statement? It’s called the fuel surcharge—a hidden charge that ranges between 1% to 3% of your fuel bill. While it may seem minor, these fees can quickly add up, especially for frequent drivers or long-distance commuters.
But here’s the good news: you can completely avoid the fuel surcharge on credit card payments by using the right fuel surcharge waiver credit card—one that not only eliminates this extra charge but also gives you cashback, reward points, or discounts on every fuel transaction.
In this guide, we’ll show you exactly how to stop losing money at the pump. We’ve reviewed and compared 7 of the best credit cards in India that offer fuel surcharge waivers, helping you choose one that fits your driving habits and lifestyle. From travel rewards to e-commerce cashback and exclusive partner benefits, these cards offer much more than just fee savings.
Let’s help you fill your tank without draining your wallet.
Table of Contents
What is a Fuel Surcharge on Credit Card?
A fuel surcharge on credit card transactions is typically a fee of 1% to 3% levied by petrol pumps or the card network provider to cover the processing cost of the fuel purchase. This fee is charged in addition to the cost of fuel and is billed separately in your credit card statement.
Most banks or credit card issuers offer a fuel surcharge waiver, either as a fixed monthly refund or capped benefit, to reduce or eliminate this charge for customers.
Why Does This Matter? (Real-World Savings Example)
Let’s say you spend ₹5,000 per month on fuel. With a 1% fuel surcharge, that’s ₹50 extra per month or ₹600 per year. If your credit card waives this surcharge, you save that amount instantly.
Some cards even offer up to 3.25% valueback on fuel (like SBI BPCL) — meaning real savings of ₹1,800+ annually.
Here’s how the savings could stack up:
| Monthly Fuel Spend | Fuel Surcharge (1%) | Waiver Cap (Card Dependent) | Potential Annual Savings |
|---|---|---|---|
| ₹3,000 | ₹30 | ₹100 | ₹360–₹1,200 |
| ₹5,000 | ₹50 | ₹250 | ₹600–₹3,000 |
| ₹10,000 | ₹100 | ₹250+ | ₹1,200–₹3,000+ |
Tip: Always check your monthly statement to ensure the waiver has been applied.
Best Credit Cards with Fuel Surcharge Waiver in 2025
Here is a detailed look at 7 top-performing credit cards that offer a fuel surcharge waiver along with their features, eligibility, pros, and cons.
| Credit Card | Fuel Surcharge Waiver | Joining Fee | Annual Fee | Special Benefits |
|---|---|---|---|---|
| SBI Miles Credit Card | 1% waiver, up to Rs 250/month | Rs 1,499 + GST | Rs 1,499 + GST | Travel credits, lounge access |
| SBI BPCL Credit Card | 1% + 3.25% valueback on BPCL fuel | Rs 499 + GST | Rs 499 + GST | 13X rewards on fuel, 5X on select spends |
| SBI SimplyCLICK Credit Card | 1% waiver on Rs 500–Rs 3,000 | Rs 499 + GST | Rs 499 + GST | 10X rewards on online partners |
| Axis Indian Oil Rupay Card | 1% waiver, 100% cashback (1st 30d) | Rs 500 + GST | Rs 500 + GST | 20 pts/100 at IOCL, dining discounts |
| Axis Indian Oil Credit Card | 1% waiver | Rs 500 + GST | Rs 500 + GST | 20 pts/100 at IOCL, 10% off movies |
| Axis Flipkart Credit Card | 1% waiver on Rs 400–Rs 4,000 | Rs 500 + GST | Rs 500 + GST | 5% cashback on Flipkart, Swiggy, etc. |
| IDFC FIRST Power Credit Card | 1% waiver on all fuel spends | Nil | Nil | Welcome benefits worth Rs 1,400, 5% off on Mamaearth, up to 10% earnings |
(Full individual card breakdown follows here — unchanged for brevity)
1. SBI Miles Credit Card
Fuel Surcharge Waiver: 1% waiver up to Rs 250/month
Top Benefits:
- 1,500 Travel Credits as welcome gift (on Rs 30,000 spend in 60 days)
- 2 Travel Credits per Rs 200 spent on travel
- 1 Travel Credit on other spends
- Lounge access, travel redemption catalog
- Low 3% foreign mark-up
Pros:
- Great for travel enthusiasts
- High rewards on travel spending
- Annual fee waiver on Rs 6L spend
Cons:
- High joining fee (Rs 1,499)
- Not ideal for low spenders
CTA: Apply Now – SBI Miles Credit Card
2. SBI BPCL Credit Card
Fuel Surcharge Waiver: 1% + 3.25% value back at BPCL pumps
Top Benefits:
- 2,000 bonus points (Rs 500 value)
- 13X reward points on fuel at BPCL
- 5X points on dining, movies, groceries
- 10% instant discount during online sales
Pros:
- Excellent for BPCL loyalists
- Strong valueback on fuel
- Affordable entry point
Cons:
- Benefits are BPCL-centric
- Limited rewards for non-fuel spending
CTA: Apply Now – SBI BPCL Credit Card
3. SBI SimplyCLICK Credit Card
Fuel Surcharge Waiver: 1% on fuel spends between Rs 500–Rs 3,000
Top Benefits:
- Amazon gift card worth Rs 500 on activation
- 10X reward points on partner websites
- 5X on other online spends
- Annual voucher benefits on Rs 1L & Rs 2L spend
Pros:
- Great for online shoppers
- Low entry barrier
- Simple rewards structure
Cons:
- Not ideal for offline spenders
- Capped waiver
CTA: Apply Now – SBI SimplyCLICK Credit Card
4. Axis Indian Oil Rupay Credit Card
Fuel Surcharge Waiver: 1% waiver + 100% cashback on first 30 days (up to Rs 250)
Top Benefits:
- 20 reward points per Rs 100 at IOCL pumps
- Movie discounts via BookMyShow
- 15% off at partner restaurants
Pros:
- High fuel rewards
- Low income requirement (Rs 15K/month)
- Entry-level benefits for salaried users
Cons:
- Only valid at IOCL outlets
- Cashback capped
CTA: Apply Now – Axis Indian Oil Rupay Card
5. Axis Indian Oil Credit Card
Fuel Surcharge Waiver: 1% waiver on fuel purchases
Top Benefits:
- 20 reward points per Rs 100 at IOCL stations
- 10% movie ticket discount
- Up to 20% off at select restaurants
Pros:
- Excellent fuel transaction benefits
- Valuable dining & entertainment perks
- Low annual fees
Cons:
- No cashback on non-fuel categories
- Not valid for new-to-credit users
CTA: Apply Now – Axis Indian Oil Credit Card
6. Axis Flipkart Credit Card
Fuel Surcharge Waiver: 1% on fuel transactions between Rs 400 and Rs 4,000 (max Rs 400/month)
Top Benefits:
- 5% cashback on Flipkart & Cleartrip
- 4% on Uber, Swiggy, PVR, Cult.fit
- Unlimited 1% cashback elsewhere
- 15% off on dining via EazyDiner
Pros:
- Excellent all-round cashback
- Great for e-commerce and food delivery
- Travel-friendly
Cons:
- Fuel benefits are limited to Rs 400 cap
- Requires Rs 25,000 monthly income
CTA: Apply Now – Axis Flipkart Credit Card
7. IDFC FIRST Power Credit Card
Fuel Surcharge Waiver: 1% waiver on all fuel transactions
Top Benefits:
- Welcome benefits worth Rs 1,400
- Buy 1 Get 1 Free on HydraGel sunscreen via Mamaearth
- Flat 5% off on prepaid Mamaearth orders
- Up to 10% profit on all affiliate transactions
Pros:
- No joining or annual fees
- Fuel surcharge waiver across all fuel stations
- Added lifestyle benefits for grooming and skincare
Cons:
- Limited offers outside lifestyle and grooming partners
- Lower brand recognition compared to major issuers
CTA: Apply Now – IDFC FIRST Power Credit Car
Pro Tips to Maximize Value
- Avoid Off-Cycle Refueling: Try to refuel after your card’s statement generation to track waivers easily.
- Don’t Exceed Waiver Limits: Most cards cap waivers at Rs 100–250 per statement cycle.
- Use Apps to Track Refunds: Use tools like CRED or card issuer apps to check whether the fuel surcharge was credited back.
- Match Card to Your Fuel Brand: IOCL loyalist? Go for Axis Indian Oil. Use BPCL? SBI BPCL is the best fit.
Common Mistakes to Avoid
- Thinking all fuel charges are waived — GST is usually not included
- Using non-fuel cards assuming waiver applies
- Ignoring card-specific minimum spend thresholds
Frequently Asked Questions: fuel surcharge on credit card
1. What is a fuel surcharge on credit card?
A fee (usually 1% to 3%) charged during fuel transactions to cover processing costs.
2. Do all credit cards offer fuel surcharge waiver?
No. Only select cards offer this benefit, usually with a monthly cap.
3. Does the waiver include GST on the surcharge?
No. Most cards do not cover GST on the surcharge amount.
4. Which is the best card for fuel surcharge waiver?
- SBI BPCL for BPCL users
- Axis Indian Oil for IOCL stations
- IDFC FIRST Power for no-fee option with lifestyle benefits
5. Is fuel surcharge applicable on debit cards too?
Yes, but waivers are more commonly available with credit cards.
Why a Fuel Surcharge Waiver Credit Card Is a Smart Move
Fuel prices in India continue to surge, and with every tank refill, you’re not just paying for fuel—you may also be paying an unnecessary surcharge that adds up month after month. This is where understanding and leveraging the fuel surcharge on credit card transactions becomes critical.
By choosing the right credit card with a fuel surcharge waiver, you unlock a simple, effective way to cut costs without changing your habits. Whether you drive daily for work or commute occasionally, saving even ₹100–₹250 a month means you’re keeping ₹1,200–₹3,000 in your pocket annually—money that would otherwise vanish into hidden transaction fees.
But the benefits don’t stop there. Today’s credit cards go beyond just waiving fuel surcharges. Many also offer:
- Accelerated rewards on fuel spends (13X–20X points at partner petrol stations)
- Cashback benefits on e-commerce, food delivery, and travel
- Welcome gifts and milestone bonuses to boost overall value
- Dining and lifestyle discounts that align with your everyday choices
Whether you’re loyal to BPCL or IOCL, want a no-fee card like IDFC FIRST Power, or prefer a multi-use cashback card like Axis Flipkart, there’s a solution crafted to match your fuel spending pattern and lifestyle.
In short, a fuel surcharge waiver credit card doesn’t just save you on fuel—it rewards you across all your spending categories. It’s not just a card—it’s a smarter way to pay, save, and live better every month.
🚘 Want to save even more on fuel and travel?
👉 Read our blog on: SBI BPCL RuPay Credit Card: 13X Fuel Best Rewards Guide
💳 Ready to Apply?
👉 Click here to 7 Best Lifetime Free Credit Cards with Huge Perks [2025]
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