What is the fuel surcharge for HDFC?

Decoding the HDFC Fuel Surcharge: It’s Not Quite a Free Tank of Gas

Fueling up your car is a constant expense, and every little bit helps. HDFC credit cards often touted for their convenience and rewards programs, offer a benefit related to fuel purchases: a waiver on the “convenience fee.” However, understanding the nuances of this offer is crucial to avoiding any unexpected charges at the pump.

While HDFC advertises a 1% convenience fee waiver on fuel transactions between ₹400 and ₹1,00,000, with a maximum waiver of ₹1,000 per statement cycle, it’s important to acknowledge that this doesn’t mean your fuel is entirely free of extra charges. The real key is the fuel surcharge.

So, what is this “fuel surcharge” and how does it impact your wallet?

The Fuel Surcharge: The Hidden Cost at the Pump

The fuel surcharge is a percentage-based fee levied by the merchant (the petrol pump) and subsequently passed on to the customer’s bank (HDFC in this case) on fuel purchases. It’s essentially a fee for processing the credit card transaction at the fuel station.

Here’s where the distinction is vital: The 1% convenience fee waiver offered by HDFC only applies to a separate “convenience fee” that may be charged by the merchant, and it does not cover the fuel surcharge.

This means that even with the convenience fee waiver, you’ll still be paying a fuel surcharge.

The Range of the HDFC Fuel Surcharge

According to available information, the fuel surcharge on HDFC credit cards generally ranges from 1% to 2.5% of the transaction amount. This percentage can vary based on several factors, including:

• The specific HDFC credit card you possess: Different cards may have different surcharge rates associated with them.
• The merchant (fuel station): Some fuel stations might have agreements with banks that dictate a slightly higher or lower surcharge.

Illustrative Example:

Let’s say you fill up your tank for ₹5,000 and your HDFC credit card has a 2% fuel surcharge.

• You’ll receive the 1% convenience fee waiver (if applicable and within the limits).
• However, you’ll still be charged a 2% fuel surcharge on the ₹5,000 transaction, amounting to ₹100.

In Conclusion:

While the HDFC 1% convenience fee waiver on fuel purchases is a welcome benefit, it’s crucial to understand that the fuel surcharge remains applicable. This surcharge, ranging from 1% to 2.5%, can still add a significant cost to your fuel expenses.

Before using your HDFC credit card for fuel, it’s wise to:

• Check the specific fuel surcharge rate associated with your card. Contact HDFC or refer to your card’s terms and conditions.
• Be aware of the ₹1,000 limit on the convenience fee waiver per statement cycle.
• Consider alternative payment methods if the fuel surcharge significantly outweighs any rewards or benefits you receive from using your HDFC credit card.

By being informed about the HDFC fuel surcharge, you can make more conscious decisions about how you pay for fuel and potentially save money in the long run. Don’t be fooled into thinking your tank is getting a free fill-up; understanding the true cost of the fuel surcharge is key to smart financial planning.