SBP Caps Fuel Station Card Transaction Fees: Merchant Discount Rate Capped At Re1 Per Litre And Interchange Reimbursement Fee At Re0.20 Per Litre As Banks MFBs EMIs And PSPs Directed To Activate Raast QR At All Fuel Stations
According to Business Recorder, the State Bank of Pakistan has extended its concessionary pricing mechanism for payment card transactions at fuel stations, capping the Merchant Discount Rate at Re1.00 per litre and the Interchange Reimbursement Fee at Re0.20 per litre; effective immediately and valid until January 31, 2027.
The SBP directed all regulated entities, banks, microfinance banks, electronic money institutions, payment service operators and payment service providers, to actively engage with fuel station operators to ensure the enablement and availability of Raast QR-based payment acceptance for fuel and related purchases during the extension period.
The move addresses a long-standing barrier to digital payment adoption at petrol pumps. Petroleum dealers had previously been paying approximately 0.8 percent in bank charges on card transactions, equivalent to around Rs2.40 per litre, which had discouraged both stations and banks from expanding card acceptance infrastructure.
Pakistan Petroleum Dealers Association Chairman Malik Khuda Baksh welcomed the decision, noting PPDA had demanded zero charges during a late-July meeting with OGRA and Petroleum Minister Bilal Azhar Kayani. While acknowledging the measure falls short of that demand, he said the association expects charges to be reduced further through future consultations. The SBP will review the arrangements around January 31, 2027 based on market response and digital payment adoption progress.
The petrol pump. Pakistan’s highest-volume cash transaction point, is finally being wired into the digital economy.
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