Breaking Update: New Fuel Charges Effective June 1, 2025
Kotak Mahindra Bank has announced a 1% fuel fee on select credit cards for customers whose monthly fuel spending exceeds specified limits. This change aims to regulate high fuel expenditures while maintaining rewards for premium cardholders.
Which Kotak Credit Cards Are Affected?
🛢️ Cards WITH 1% Fuel Fee (Above Threshold)
- White Signature
- Privy League Signature
- Kotak IndiGo 6E XL Rewards
- Mojo Platinum
- Zen Signature
- Royale Kotak Signature
- PVR INOX Kotak Card
- 6E Rewards IndiGo Kotak Card
- Kotak BIZ
- NRI Royale Signature
⛽ Cards EXEMPT from Fuel Fee
- White Reserve
- Kotak Solitaire
- Kotak Infinite
- Kotak Signature
- IndianOil Kotak Credit Card
- Myntra Kotak Credit Card
Fuel Spending Thresholds Before 1% Fee Applies
| Credit Card | Monthly Fuel Limit |
|---|---|
| White Signature, Privy League Signature, IndiGo 6E XL | ₹50,000 |
| Mojo Platinum, Zen Signature, Royale, PVR INOX, 6E Rewards, Kotak BIZ, NRI Royale | ₹35,000 |
Example: If you spend ₹60,000 on fuel with a White Signature card, you’ll pay 1% of ₹10,000 (₹100) as an extra fee.
Changes to Fuel Surcharge Waiver Benefits
Starting June 1, 2025, Kotak has revised fuel surcharge waiver policies:
- Waiver cap reduced on some cards (check your card’s terms).
- Minimum transaction value for waiver may apply.
- Premium cards retain higher waivers.
FAQs: Kotak’s New Fuel Credit Card Charges
1. Why is Kotak charging 1% on fuel spends?
To discourage excessive fuel spending on credit cards and align with RBI’s guidelines on reward point misuse.
2. Does this apply to all fuel transactions?
Only when your monthly fuel spending crosses the threshold for your card type.
3. How is the 1% fee calculated?
- Only on the amount exceeding the limit (e.g., ₹55,000 spend on a ₹50,000-limit card = 1% of ₹5,000 = ₹50 fee).
4. Will I still get reward points on fuel spends?
Yes, but check your card’s updated rewards policy.
5. Are debit cards or UPI affected?
No, this only applies to select Kotak credit cards.
6. Can I avoid this fee?
- Use an exempted Kotak card (e.g., IndianOil Kotak Card).
- Pay via debit card/UPI for high fuel spends.
- Split payments below the monthly limit.
7. When will I see this charge on my bill?
From June 1, 2025, for billing cycles ending after that date.
8. Is Kotak the only bank doing this?
No, other banks like HDFC & SBI also impose fuel surcharges, but limits vary.
9. Where can I check my card’s exact limit?
- Kotak NetBanking → Card details
- Customer care: 1860 266 2666
Pro Tips to Minimize Impact
✔ Use fuel-specific cards (e.g., IndianOil Kotak Card).
✔ Track monthly fuel spends via Kotak’s app.
✔ Consider UPI/debit cards for high fuel purchases.
📢 Final Note:
This change does not affect existing EMIs or loans. Always check your card’s latest terms via Kotak Bank’s website.
Last Updated: May 30, 2025 | Source: Kotak Mahindra Bank Circular
