Digital payments at fuel stations: SBP extends concessionary pricing mechanism

KARACHI: The State Bank of Pakistan (SBP) on Monday announced to extend the concessionary pricing mechanism for payment card transactions at fuel stations to promote digital payments and expand the use of the Raast QR payment system.

According to SBP, in order to further facilitate the acceptance of digital payments at fuel stations and accelerate the deployment of interoperable Raast QR-based payment acceptance, it has been decided Merchant Discount Rate (MDR) for all card-present transactions conducted at fuel stations for the purchase of fuel and related products will be capped at Re1.00 per litre.

Similarly, the Interchange Reimbursement Fee (IRF) for these transactions has been capped at Re0.20 per litre.

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The SBP has decided that these arrangements are for all payment cards issued in Pakistan and will remain in force until January 31, 2027 to facilitate digital payment acceptance at fuel stations.

During the period banks, MFB, EMIs, PSOs & PSPs will actively engage with their respective merchants (fuel stations) to ensure the enablement and availability of Raast QR-based payment acceptance, for the purchase of fuel and related products, the SBP directed.

The SBP has also advised all regulated entities to actively engage with fuel station operators to ensure the availability and activation of Raast QR-based payment acceptance for fuel and related purchases.

The SBP said that, it will review these arrangements on or around January 31, 2027, taking into account the market’s response to the pricing mechanism and the progress made in the adoption of digital payments. The new instructions are effective immediately, while all other directives issued earlier on the subject will remain unchanged.

According to petroleum dealers, currently, fuel stations pay around 0.8 percent in bank charges on card transactions, equivalent to approximately Rs2.40 per litre. Previously, high bank charges had discouraged both fuel stations and banks from expanding card payment acceptance, they said.

Pakistan Petroleum Dealers Association (PPDA) has welcomed the SBP decision, saying it will promote digital payments and enhance financial literacy across the country.

Malik Khuda Baksh chairman PPDA said that SBP’s latest move would encourage greater adoption of digital payments at petrol pumps by lowering transaction costs.

“Although our demand was for zero percent charges, we appreciate this initiative and believe that, in consultation with the PPDA, the charges will be reduced further in the future,” PPDA Chairman said.

He said that during a meeting with officials from the Oil and Gas Regulatory Authority (Ogra) and the government in the last week of July, the PPDA had demanded the complete elimination of bank charges on card payments at fuel stations. Federal Minister for Petroleum Bilal Azhar Kayani assured the association that the issue would be addressed and he has honoured his commitment, he added.

Copyright Business Recorder, 2026