A Petrol Surcharge Waiver is a benefit offered by some credit card companies that exempts cardholders from paying a surcharge when they use their card to purchase fuel. The surcharge is typically 1% percentage of the fuel purchase amount, and it is 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 a credit card is 1% of Fuel cost + 18% of (1% of Fuel cost), subject to a minimum of Rs. 10 per transaction.

How is Fuel Surcharge Calculated?

Petrol cost: Rs 2000
Fuel Surcharge: 1% of 2000 = Rs 20
GST on fuel surcharge of Rs 20: Rs 3.6
Total charges to credit card: Rs 2023.6

It is important to know the terms to be eligible for Petrol surcharge waivers with credit cards like:

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