Best Credit Cards for Fuel & Everyday Spends in India 2025

Fuel, groceries, and utility bills make up a huge chunk of monthly spending. The right cards can give you consistent returns on these unavoidable expenses.

Key Insight: Most "fuel cards" aren't worth it. Fuel surcharge waiver (1%) is a standard feature on many general cards. Focus on overall everyday rewards instead.

Understanding Fuel Surcharge Waiver

What It Actually Means

When you pay for fuel with a credit card:

• Petrol pump charges 1% surcharge
• Most cards "waive" this (give it back as reward/credit)
• Waiver usually capped at ₹100-250/month

The Math

Monthly Fuel Spend	Surcharge (1%)	After Waiver (₹100 cap)	You Still Pay
₹5,000	₹50	₹0	₹0
₹10,000	₹100	₹0	₹0
₹15,000	₹150	₹100 waived	₹50
₹25,000	₹250	₹100 waived	₹150

Reality Check: For most people spending under ₹10k/month on fuel, the surcharge waiver is a non-issue.

Top Cards for Fuel

1. IndianOil Axis Bank Credit Card - Best Pure Fuel Card

Annual Fee: ₹500

Feature	Details
IndianOil rewards	20X on fuel at IndianOil
Surcharge waiver	Yes (₹250/month cap)
Fuel point value	Decent redemption
Other spend	Basic rewards

Best For: Heavy fuel users who prefer IndianOil stations.

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2. BPCL SBI Credit Card - Best for BPCL Stations

Annual Fee: ₹499

Feature	Details
BPCL rewards	13X on BPCL fuel
Value Back	Up to 7.25% on fuel
Surcharge waiver	Yes (₹100/month cap)
BPCL PetroBonus	Points transferable

Best For: Regular BPCL customers.

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3. HPCL ICICI Coral - Best for HP Stations

Annual Fee: ₹499

Feature	Details
HP rewards	6X on HP fuel
Surcharge waiver	Yes
DriveTrack	Additional HP benefits

Best For: HP station loyalists.

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Top Cards for Everyday Spending

1. Axis Ace - Best Free Everyday Card

Annual Fee: ₹0 (lifetime free)

Category	Cashback
Utility bills	2%
Google Pay spends	5% (select merchants)
Other	1%
Fuel surcharge waiver	Yes

Best For: Everyone. Zero cost, solid returns.

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2. HSBC Cashback - Best Unlimited Cashback

Annual Fee: ₹750 (waivable)

Category	Cashback
All spending	1.5% unlimited
Fuel surcharge waiver	Yes
Caps	None

Best For: Simplicity lovers who hate tracking categories.

Why It's Great: No mental math. Everything earns 1.5%. No caps.

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3. SBI Cashback - Best for Online Utilities

Annual Fee: ₹999 (waivable)

Category	Cashback
Online spending	5% (capped at ₹5,000/month)
Offline	1%
Fuel surcharge waiver	Yes

Best For: Heavy online bill payers (electricity, broadband, recharges via apps).

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4. Amazon Pay ICICI - Best for Amazon + Everyday

Annual Fee: ₹0

Category	Cashback
Amazon	5% (Prime)
Amazon Pay partner merchants	2%
Other	1%
Fuel	1% (no surcharge waiver)

Best For: Amazon shoppers who also want decent everyday returns.

Note: No fuel surcharge waiver, but 1% back still helps.

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5. HDFC MoneyBack+ - Best Entry HDFC Everyday Card

Annual Fee: ₹500

Category	Cashback
All online spends	2X points
Offline	1X points
Fuel surcharge waiver	Yes (₹100 cap)

Best For: HDFC relationship builders wanting everyday card.

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Groceries: Special Considerations

Supermarkets & Retail

Most cards treat grocery stores as "offline retail" with base rewards. Exceptions:

Card	Grocery Rate	Notes
HDFC Millennia	5%	On partner merchants
Axis Ace	2%	If paid via bills section
Amazon Pay ICICI	2%	Amazon Fresh, BigBasket via Amazon Pay

BigBasket, Grofers, Zepto

Card	Rate	How
Amazon Pay ICICI	2%	Via Amazon Pay balance
SBI Cashback	5%	Counts as online
HDFC SmartBuy	10X	Buy BigBasket vouchers

Utility Bills Strategy

Electricity, Water, Gas

Payment Method	Best Card
Online portal	SBI Cashback (5%)
App payment	Axis Ace (2% via GPay)
Auto-debit	HSBC Cashback (1.5%)

Mobile & Broadband

Provider	Best Payment	Card
Jio	Via Amazon Pay	Amazon Pay ICICI (2%)
Airtel	Airtel app	SBI Cashback (5%)
Broadband	Provider website	SBI Cashback (5%)

Insurance Premiums

Card	Rate	Notes
Axis Magnus	Full rewards	Counts toward milestone
HDFC Regalia	SmartBuy	Buy vouchers first
HSBC Cashback	1.5%	Simple, no hassle

Pro Tip: Large insurance payments can help hit quarterly milestones on premium cards.

Everyday Card Stack

Minimalist (₹0 annual fees)

Card	Use For
Axis Ace	Utilities, bills, fuel
Amazon Pay ICICI	Amazon + daily shopping

Maximizer (under ₹1,500)

Card	Use For
SBI Cashback	Online utilities (5%)
HSBC Cashback	Everything else (1.5%)
Free fuel card	If needed

Premium Everyday (under ₹5,000)

Card	Use For
HDFC Regalia	SmartBuy vouchers
SBI Cashback	Online
Axis Ace	Backup + utilities

Common Mistakes

1. Getting dedicated fuel card for ₹5k/month fuel - General card with waiver is enough
2. Ignoring caps - SBI Cashback 5% is capped; plan around it
3. Using travel card for groceries - Travel cards often have poor everyday rates
4. Forgetting autopay setup - Missing payments negates all rewards
5. Not batching bill payments - Paying bills weekly loses potential monthly milestone progress

Reward Optimization Tips

Batch Billing Strategy

Instead of paying bills as they come:

1. Set due dates to align (month-end)
2. Pay all together to reach card milestone thresholds
3. Hit higher reward slabs

Category Rotating

Track which categories give bonus rewards this month/quarter:

• Some cards rotate 5X categories
• Align spending with active bonuses

Avoiding Reward Leakage

Scenario	Leakage	Fix
Fuel at random pump	Miss co-brand rewards	Pick one oil company
Groceries via UPI	0 rewards	Use card or card-linked UPI
Auto-debit via bank	0 rewards	Set up card auto-debit instead

Next Steps

1. Audit your monthly spending - What % is fuel, groceries, utilities?
2. Get Axis Ace - It's free and covers basics
3. Add SBI Cashback if heavy online biller - 5% on utilities adds up
4. Skip dedicated fuel cards - Unless you spend ₹15k+/month on fuel
5. Set up autopay on all cards - Never miss payments

For everyday spending, simplicity wins. A single good cashback card (HSBC Cashback or Axis Ace) handles most needs. Add category-specific cards only if the math justifies the mental overhead.