Fuel is one of those expenses you just cannot escape. Whether it’s the daily office commute, weekend drives with family, or even long road trips, petrol and diesel burn a solid hole in the pocket. But what if every refill gave you money back? That’s exactly what fuel credit cards do. The trick is picking one that doesn’t charge you more in annual fees than it gives back in rewards. This guide breaks down the best fuel credit cards in India under ₹500 annual fee. Each card is explained in simple terms, with real examples of how much money you can actually save in a year.
1) ICICI Bank HPCL Coral Credit Card
Annual fee: ₹199 + GST
This is one of the cheapest fuel cards available, and that’s exactly its strength. It’s simple, it’s affordable, and it gives you steady savings.
How much can you save?
Let’s say you spend ₹5,000 every month on fuel. That’s ₹60,000 per year. The Coral card typically gives 2.5% back in rewards/cash equivalent.
- 2.5% of ₹60,000 = ₹1,500 back in a year
- Minus the annual fee (₹199) = ₹1,301 net savings
Even with lower spends, like ₹2,500 per month, you still come out ahead. That’s the beauty of a low-fee card — the break-even point is low.
Why it works
- Very low fee (₹199).
- Fuel surcharge waiver on eligible transactions.
- Rewards can be redeemed for fuel at HPCL pumps.
Who should get it?
Anyone who wants a no-nonsense card that keeps costs down. If your monthly fuel spend is modest, this card ensures you still end the year in profit.
2) Kotak IndianOil Credit Card
Annual fee: ₹449 + GST
This one is designed for those who refuel mostly at IndianOil pumps. Slightly higher fee than Coral, but stronger rewards make up for it.
How much can you save?
Take the same ₹5,000 monthly spend (₹60,000 per year). At an effective 4% cashback/reward rate:
- 4% of ₹60,000 = ₹2,400 back in a year
- Minus annual fee (₹449) = ₹1,951 net savings
- Add in surcharge waivers (~1% worth ₹600/year) = ₹2,500+ net savings
That’s 5x the fee back.
Why it works
- Decent rewards (around 4%) at IndianOil pumps.
- Annual fee is still below ₹500.
- Surcharge waiver boosts effective savings.
Who should get it?
Anyone loyal to IndianOil pumps. If you consistently refuel at IOCL, this card can give you ₹2,000–₹3,000 savings per year even after the fee.
3) HDFC Bank IndianOil Credit Card
Annual fee: ₹500 + taxes (often waived on annual spends)
This is another IndianOil tie-up, but from HDFC. It works best if you redeem fuel points directly for petrol/diesel.
How much can you save?
With ₹5,000 monthly fuel spend (₹60,000 yearly) and 5% reward rate:
- 5% of ₹60,000 = ₹3,000 in fuel points
- Minus ₹500 fee = ₹2,500 net savings
HDFC’s conversion rates matter. If you redeem points at pumps, you get maximum value. If you use them elsewhere, value might shrink.
Why it works
- Strong 5% reward rate at IOCL.
- Easy redemption into fuel.
- 1% surcharge waiver on transactions above ₹400.
Who should get it?
Drivers who only use IndianOil pumps and don’t mind managing the redemption system. For heavy commuters, this is a solid money saver.
4) IDFC FIRST Bank HPCL Power+
Annual fee: ₹499 + GST
IDFC offers two variants (Power and Power+). The Power+ version (₹499) gives stronger rewards and suits people who refuel regularly at HPCL.
How much can you save?
Suppose you spend ₹5,000 per month on HPCL fuel. At an effective 3–5% value back, you’re looking at:
- 3% = ₹1,800 yearly
- 5% = ₹3,000 yearly
- Minus ₹499 fee = ₹1,300–₹2,500 net
Even if you’re on the lower side (3%), you’re still in the green.
Why it works
- Good welcome benefits (often covers first year fee).
- Savings are amplified if you use HP Pay app.
- Fee is manageable at ₹499.
Who should get it?
Those who refuel only at HPCL pumps and don’t mind using HP Pay for maximum rewards.
5) RBL Bank IndianOil XTRA Credit Card
Annual fee: ₹500 + GST (waived on high spends)
This one looks the flashiest on paper, with claims like “250 litres of free fuel”. But let’s cut through the hype.
How much can you save?
At 15 fuel points per ₹100 at IndianOil, with 1 FP = ₹0.50, the math is:
- ₹100 spend = ₹7.5 back (7.5% effective)
- ₹5,000 monthly fuel (₹60,000 yearly) = ₹4,500 back
- Minus fee (₹500) = ₹4,000 net savings
Sounds great, right? But — it depends on hitting caps and annual spends. If you don’t, your savings can drop sharply.
Why it works
- Highest headline reward rate (up to 7.5%).
- Fee can be waived if you spend enough.
- Rewards redeem directly at IndianOil.
Who should get it?
Big spenders who can meet the annual spend threshold. If you’re a heavy driver or put family fuel + shopping on the same card, this could be the most rewarding.
Comparison of Best Fuel Credit Cards in India Under ₹500 Annual Fee
| Credit Card | Annual Fee (excl. GST) | Effective Fuel Savings | Monthly Cap (if any) | Net Yearly Saving* (₹5,000/month spend) | Best For |
|---|---|---|---|---|---|
| ICICI HPCL Coral | ₹199 | ~2.5% on HPCL fuel + surcharge waiver | Yes (reward redemption limits apply) | ~₹1,300 | Low spenders who want a super low fee card |
| Kotak IndianOil Credit Card | ₹449 | ~4% on IOCL fuel + surcharge waiver | Caps may apply | ~₹2,500 | IOCL loyalists with steady spend |
| HDFC IndianOil Credit Card | ₹500 | Up to 5% back in Fuel Points | Monthly caps on accelerated points | ~₹2,500 | IOCL regulars who redeem points at pumps |
| IDFC FIRST HPCL Power+ | ₹499 | 3–5% on HPCL fuel (higher with HP Pay) | Caps based on variant | ₹1,300–₹2,500 | HPCL customers who use HP Pay |
| RBL IndianOil XTRA | ₹500 | Up to 7.5% (15 FP/₹100 at IOCL) | Caps + high spend requirement | ~₹4,000 (if conditions met) | Heavy spenders at IOCL pumps |
*Net yearly saving assumes ₹5,000 fuel spend per month (₹60,000 yearly) and includes card fee deduction.
Quick Tips to Maximise Fuel Card Savings
- Know your monthly fuel spend. If it’s below ₹2,000, stick to a low-fee card like ICICI Coral.
- Check caps. A “5% cashback” that’s capped at ₹200/month = only ₹2,400 max per year.
- Use the right pump. IOCL cards don’t reward you at HPCL or BPCL. Pick a card based on the pump you actually use.
- Add the surcharge waiver. 1% waived adds up. On ₹60,000 yearly fuel, that’s another ₹600 saved.
- Don’t ignore GST. A ₹499 fee + GST = ~₹589. Always include tax when calculating.
Final Word
The best fuel credit card in India under ₹500 really depends on where you refuel.
- Low spenders → ICICI HPCL Coral (₹199 fee, easy savings).
- IOCL loyalists → Kotak IndianOil or HDFC IndianOil (₹449–₹500 fee, bigger returns).
- HPCL regulars → IDFC FIRST Power+ (₹499, solid with HP Pay).
- Big spenders → RBL XTRA (₹500, highest potential but condition-heavy).
The math is simple: if you spend at least ₹3,000 a month on fuel, all these cards will give you more back than they cost. Choose the one that matches your favourite petrol pump, and you’ll save thousands every year without even trying.
