Good news: You can get fuel on credit via Hindustan Petroleum outlets, here's how

As the petrol and diesel prices are touching new highs everyday, this might bring a sigh of relief to the common man. Shriram Transport Finance Company (STFC) has recently got into a deal with Hindustan Petroleum Corporation to provide fuel on credit. The STFC informed that it will offer credit for fuel refilling to customers through a digital channel in partnership with HPCL. 

The two companies have inked a memorandum of understanding (MoU) to offer this credit-based fuel refilling service.

This will enable customers to have an efficient way of purchasing auto fuels like diesel, petrol and lubricants at credit, STFC said in a statement today.

STFC which offers various loan products including commercial vehicle finance and tyre loans said this credit facility is an affordable low-cost working capital solution to monitor and control fuel expenses.

Fuel finance service will be a cash/card-free transaction, the company said.

"STFC envisions filling the gap in providing end-to-end finance solutions to its customers. Hence, this pact with HPCL is hopeful to serve the small road transport owner (SRTO's) and first time owner (FTU's), which forms more than 70 per cent of our customer base, with low-cost working capital," Umesh Revankar, MD and CEO, STFC said.

The tenure of the credit facility, based on OTP-based digital platform, will range from 15-30 days and customers.

"STFC in turn also hopes to contribute to the national goal of a cashless economy and Digital India mission by linking this credit facility with a mobile number integrated web enabled OTP-based platform installed across HPCL retail outlets," Revankar said.

G S V Prasad, Executive Director-Retail, HPCL said the tie-up will provide fuel to the customers with complete cashless convenience on pan-India basis, along with loyalty rewards and insurance.

Meanwhile, the prices of petrol and diesel touched new record highs for the straight seventh day on Monday. In New Delhi, the petrol was retailing at Rs 76.57 in New Delhi while the price of diesel was Rs 67.82. An increase of 33 paise in petrol and 25 paise in diesel made the rates to reach at record highs. 

With this, petrol prices hit a 56-month high of Rs 76.24 per litre while diesel prices touched a record high of Rs 67.82 in the national capital.

(With inputs from agencies)