Dealers had sought a reduction in card transaction charges during talks with the government, says Malik Khuda Bakhsh
KARACHI (Commerce Reporter): The State Bank of Pakistan (SBP) has decided to retain the existing cap on the Merchant Discount Rate (MDR) fee for card-based payments at petrol pumps to encourage digital transactions.
Under an SBP circular, the Merchant Discount Rate (MDR) on card transactions at petrol stations will remain capped at Rs1 per litre. The central bank has also decided to keep the Interchange Reimbursement Fee (IRF) for card payments at 20 paisas per litre.
The SBP has directed all banks to ensure the availability of Raast QR payment facilities at petrol pumps. According to the central bank, the current arrangements aimed at promoting digital payments at fuel stations have been extended until January 31, 2027.
Welcoming the decision, Malik Khuda Bakhsh, Chairman of the Pakistan Petroleum Dealers Association (PPDA), said that previously dealers were charged 0.8% per litre, which, at current fuel prices, amounted to approximately Rs2.80 per litre. He added that the association had demanded a reduction in card transaction charges during negotiations with the government.
PPDA Vice Chairman Tariq Hassan said that the dealers had sought the complete elimination of card charges, but the government had instead reduced the fee to Rs1 per litre.
Another PPDA Vice Chairman, Anwar Kamal, said that reducing card transaction charges was one of the association’s five key demands from the government, and this decision represented a partial fulfillment of that demand.
