Digital payments at petrol pumps get major boost under new SBP rules

The move could reduce cash use across the fuel sector.

SBP sets new limits on card charges

The State Bank of Pakistan has introduced a new framework to encourage digital payments at fuel stations across the country. Under the new system, banks have been directed to help petrol pumps accept more card and Raast QR payments.

The Merchant Discount Rate for debit and credit card payments at fuel stations will be capped at Rs1 per litre. The Interchange Reimbursement Fee for fuel and related purchases will also be limited to Rs0.20 per litre.

The new pricing arrangement will apply to all payment cards issued in Pakistan. According to the SBP, the special rates will remain in place until January 31, 2027.

Petrol dealers welcome lower charges

The SBP has also asked commercial banks to work with fuel station operators to introduce Raast QR payment facilities. This will allow customers to pay for fuel through Pakistan’s instant digital payment system without relying on cash.

The initiative comes as Pakistan has more than 15,000 fuel stations, while many POS terminals remain concentrated in large cities. This has limited card payment options for customers in several areas.

Digital payments analyst Abdus Samad Khan said the lower charges could encourage more fuel stations to install POS machines and QR payment facilities. He said wider digital payment use could also make transactions more convenient and reduce the security costs linked to handling large amounts of cash.

The Pakistan Petroleum Dealers Association has welcomed the SBP decision to reduce bank charges on card payments. The association described the move as an important step towards increasing digital payments and financial inclusion.

Petroleum dealers said they currently pay around 0.8% in bank charges on card transactions. According to the dealers, this works out to about Rs2.40 per litre and has discouraged many petrol pumps and banks from expanding card payment facilities.

PPDA Chairman Malik Khuda Baksh said the association had wanted the charges to be completely removed. “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,” he said.

More customers could shift away from cash

The PPDA had formally raised its demand for a complete waiver during a meeting with Ogra and government officials in the last week of July. Federal Minister for Petroleum Bilal Azhar Kayani had assured the association that the issue would be taken up, and the PPDA chairman said the minister had now fulfilled that commitment.

The latest SBP figures show that 68.3 million payment cards are currently in circulation in Pakistan. Card usage is also increasing, especially in the retail sector, creating more room for digital payments at fuel stations.

The new framework could make card and QR payments more attractive for petrol dealers by reducing transaction costs. If more fuel stations adopt these options, customers may have fewer reasons to carry cash for fuel purchases.

The biggest change could come from wider Raast QR acceptance because it gives petrol pumps another low-cost digital payment option. The success of the plan will depend on how quickly banks and fuel station operators install and maintain the required payment facilities.

The lower charges may also help bring digital payments to fuel stations outside major cities. For consumers, this could mean easier and safer payments, while dealers could benefit from lower cash-handling costs.

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