The State Bank of Pakistan has extended concessionary pricing for payment card transactions at fuel stations until January 31, 2027. The measure aims to lower acceptance costs and accelerate the rollout of interoperable Raast QR payments.
The SBP has set the Merchant Discount Rate at a maximum of Rs.1 per litre for card-present purchases of fuel and related products. It has capped the Interchange Reimbursement Fee at Re0.20 per litre. The arrangement covers all payment cards issued in Pakistan and took effect immediately.
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Banks Directed to Expand Raast QR Facilities
The central bank directed banks, microfinance banks, electronic money institutions, payment system operators and payment service providers to engage with fuel retailers. They must help petrol stations activate and maintain Raast QR payment acceptance throughout the concessionary period.
The SBP will review the mechanism on or around January 31, 2027. It will consider the market’s response and the progress made in digital payment adoption. All earlier directives on fuel-station payment acceptance will remain unchanged.
The pricing model links charges to each litre sold instead of applying only a percentage to the total bill. This gives stations more certainty over transaction costs when fuel prices or purchase amounts change.
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Petroleum dealers said fuel stations currently pay around 0.8% in bank charges on card transactions. That equals approximately Rs2.40 per litre at prevailing prices. They said high charges had discouraged stations and banks from expanding card-payment facilities.
The new cap could lower the cost gap between electronic and cash transactions. It may also encourage more stations to install point-of-sale terminals and display interoperable Raast QR codes.
Petroleum Dealers Welcome SBP Decision
The Pakistan Petroleum Dealers Association welcomed the move. It said the decision would promote digital payments and improve financial literacy across the country.
PPDA Chairman Malik Khuda Baksh said reduced transaction costs would encourage wider electronic payment acceptance at petrol pumps.
“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,” Baksh said.
He said the PPDA demanded the complete removal of bank charges during a meeting with government and Oil and Gas Regulatory Authority officials in late July. Federal Petroleum Minister Bilal Azhar Kayani assured the association that authorities would address the issue, he added.
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Baksh said the minister had honoured that commitment through the latest measure. The dealers’ association still hopes the government and central bank will eventually remove the charges altogether.
The revised mechanism may give consumers more payment choices while reducing cash handling at fuel stations. Wider Raast QR adoption could also improve transaction records and support greater financial documentation.
Its impact will depend on how quickly banks and payment companies equip stations, train staff and maintain reliable services.
