Fuel Surcharge is the charge of 1% of the fuel amount levied by fuel outlets when paying for fuel with credit cards, subject to a minimum of Rs 10 per transaction. There is an additional 18% GST on the surcharge which is also added to the credit card charge. 

So, the total charge on credit card is 1% of Fuel cost + 18% of (1% of fuel cost)

Here are two examples to help you understand the calculation:

Example 1
Fuel cost: Rs 300
Fuel Surcharge: 1% of 300 = Rs 3, but the minimum amount is Rs 10.
GST on fuel surcharge of Rs 10: Rs 1.8
Total charges to credit card: Rs 211.8

Example 2
Fuel cost: Rs 3000
Fuel Surcharge: 1% of 3000 = Rs 30
GST on fuel surcharge of Rs 30: Rs 5.4
Total charges to credit card: Rs 3035.4

Many credit cards offer fuel surcharge waivers, but there might be certain important conditions that you should know:

  1. Fuel Surcharge Waiver outlets: Some credit cards provide Fuel Surcharge waiver for fuel spends at any fuel outlet while certain others provide the waiver for fuel spends at select fuel outlets/ partner company outlets only.
  2. Maximum fuel surcharge waiver cap per statement or calendar month: Some credit cards have a maximum limit (like Rs 100) on amount of fuel surcharge waiver given per statement or calendar month and the waiver will not be provided for spends above the limit. 
  3. Fuel transactions eligible for surcharge waiver: Some credit cards specify a minimum and maximum amount on fuel spend to be eligible for fuel surcharge waiver. Example: Min Rs 400 and Max Rs 4000. Fuel spends outside of these are not eligible for waiver.