Which Credit Card for Petrol? How Should You Choose?

Just how much can you save with a credit card for petrol discounts? Use our calculator and find out.

For car owners in Singapore, petrol costs often loom large as a significant portion of monthly expenses. It's not unusual to feel a pinch at the pump, especially when each visit to the petrol station can easily set you back hundreds of dollars. This "pain at the pump" is a shared experience for many drivers here.

That's precisely why petrol credit cards have become such a popular tool for savvy motorists. These cards offer a lifeline by providing attractive rewards or substantial discounts at specific petrol stations. 

Imagine shaving off up to 20% on your fuel bills! Over time, these savings can really add up. For instance, if you spend $200 on petrol each month and enjoy a consistent 15% discount, that translates to an annual saving of $360 – money that could be used for other things.

So, if you're wondering which credit card is best for petrol in Singapore, you've come to the right place. We’ll explore options that not only give you excellent petrol discounts but also offer cashback and the opportunity to earn other valuable rewards like air miles. Let's find the perfect one for your needs!

>> Learn more: Discover the best credit cards for petrol in Singapore

“When searching for which credit card is best for petrol in Singapore, keep in mind that the top contenders often provide attractive petrol discounts alongside compelling cashback offers and opportunities to accumulate reward points on everyday purchases.”

Some competitive benefits to aim for in the best petrol credit card includes up to 20% savings at a specific petrol station, up to 5% cashback, or 4 miles per dollar.

What to consider when searching for the best credit card for petrol

Annual Fee: When evaluating which credit card is the best for petrol in Singapore, the annual fee is a crucial factor. The rewards for some cards can often outweigh the cost of the annual fee. 

For instance, the OCBC 365 Credit Card, despite having an annual fee, provides significant discounts across multiple petrol stations and a generous 6% cashback on fuel, alongside cashback on other spending categories, making it a worthwhile option for frequent drivers.

Caps on rewards: It's essential to be aware of any limits on fuel rewards associated with a petrol credit card. Many cards come with caps, such as a maximum cashback amount you can earn each month or a requirement to meet a minimum monthly spending threshold to unlock specific cashback tiers or higher petrol discount rates. 

Therefore, it's wise to carefully assess your average monthly spending on petrol and other categories to determine if a card's reward structure and caps align with your spending habits to maximise your benefits.

“You need to consider the actual dollar value you'll get when you redeem those rewards. For example, the value you derive from redeeming reward points for air miles might be significantly different from redeeming the same number of points for shopping vouchers.” 

Dollar value for redemption: When comparing which credit card is best for petrol, it's vital to look beyond just the number of rewards points or the percentage of cashback offered. 

You need to consider the actual dollar value you'll get when you redeem those rewards. For example, the value you derive from redeeming reward points for air miles might be significantly different from redeeming the same number of points for shopping vouchers. 

Always try to calculate the effective return rate based on your intended redemption method to make an informed decision about the best petrol credit card for your needs.

Petrol station: Certain credit cards offer enhanced rewards or greater petrol discounts at particular petrol stations. If you consistently frequent a specific brand, such as Shell, Esso, or SPC, then a card that maximises its benefits at that station could be the best credit card for petrol for you. 

Consider your usual refuelling habits and see if any petrol credit card aligns well with your preferred petrol station to unlock the most significant savings.

Membership requirements: Some petrol discount credit card options may have specific membership requirements associated with a particular petrol station or loyalty programme. To access the highest tier of discounts or the full suite of benefits offered by the card, you might need to be a member of that specific petrol brand's loyalty scheme. 

Factor in any potential membership fees or requirements when evaluating the overall value proposition of the best petrol credit card for your driving needs in Singapore.

>> Learn more: Explore more options for petrol credit cards

Fuel discounts at specific petrol stations

What’s the issue

Relying solely on a credit card that offers high petrol discounts at only a single petrol station brand can be limiting for drivers in Singapore. You will be restricted to that particular brand, potentially missing out on attractive promotions or lower fuel prices offered by other stations on any given day. 

For instance, if your credit card’s petrol station is Caltex and SPC is having a flash sale or an exclusive discount event, you might not be able to take advantage of those savings if your best petrol credit card only provides superior rewards at Caltex.

This lack of flexibility means you could end up paying more for your fuel on some occasions to maximise your credit card rewards.

How to solve it

While it might be tempting to exclusively patronise the petrol station where your credit card offers the highest rewards, the average driver could benefit from a more pragmatic approach. 

This doesn’t mean you should go out and get multiple credit cards, each dedicated to a different petrol station. A more sensible strategy is to opt for a petrol credit card that provides decent discounts or rewards across at least two major petrol station brands in Singapore. 

This offers a balance between maximising your savings and providing you with the flexibility to choose between different stations based on location convenience or ongoing promotions. 

“By having coverage across multiple stations, you can still enjoy significant petrol discounts while retaining the ability to take advantage of the best deals available at any given time, without being locked into a single provider.”

Monthly fuel cashback cards

Pros

One significant advantage of a cashback card that rewards both fuel purchases and other everyday spending is the potential for double savings and a simplified credit card strategy. You're no longer solely reliant on your petrol expenditure to meet minimum spending requirements for bonus rewards. 

A card like the UOB One Card exemplifies this, offering a solid 5% cashback at petrol stations alongside potentially higher cashback rates (up to 10%) on a wide array of common spending categories in Singapore, such as online shopping, groceries, food delivery, and utilities.

This allows you to consolidate your spending and potentially unlock higher cashback tiers more easily than with a card focused only on petrol discounts.

Cons

Despite the convenience, cashback cards like the UOB One Card do have limitations when it comes to fuel savings. These cards often come with spending caps on the total cashback you can earn per month, which could limit your overall rewards, especially if you have high fuel consumption. 

“Cashback requirements could lead to users potentially overspending in other categories just to reach the threshold and qualify for the desired cashback on their petrol expenses.”

Furthermore, to unlock the maximum cashback rates, including the 5% on petrol, you typically need to meet a relatively high minimum monthly spend (in the UOB One Card's case, S$2,000). Cashback requirements could lead to users potentially overspending in other categories just to reach the threshold and qualify for the desired cashback on their petrol expenses.

Conversely, if your total monthly spending falls below the minimum, you might not even attain the advertised 5% savings on your petrol spend, making it less reliable for consistent fuel discounts compared to cards specifically designed for petrol.

>> Learn more: Petrol price comparisons in Singapore

Are percentage-based fuel discounts as good as they are sound?

It's certainly eye-catching when credit cards advertise substantial fuel savings, with some boasting discounts of up to 20% or even 25% at specific petrol stations. For car owners in Singapore, these seemingly large percentage reductions on their petrol bills can be incredibly appealing and appear to be the best petrol credit card option at first glance.

“While a 20% discount sounds significant, if the base price of petrol increases substantially, the actual dollar amount you save might not increase proportionally, especially if the discount is combined with a fixed dollar rebate.”

However, it's important to consider how external factors, such as rising fuel prices, can impact the real effectiveness of these percentage-based discounts. While a 20% discount sounds significant, if the base price of petrol increases substantially, the actual dollar amount you save might not increase proportionally, especially if the discount is combined with a fixed dollar rebate. 

In such scenarios, the perceived high percentage saving might not translate to the same level of tangible cost reduction over time.

Furthermore, many of these fuel-branded credit cards that offer very high percentage discounts typically tie those significant savings to a specific petrol station brand. While you might enjoy substantial discounts at, say, Shell, you might not receive comparable benefits if you need to refuel at an Esso or SPC station due to location convenience or a better price offered at that moment. 

This inherent restriction in flexibility can diminish the overall value of the card if you aren't always able to patronise the designated petrol station to take advantage of the advertised high petrol discount.

>> Link: How to maximise fuel savings with the right credit card promotions