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ISLAMABAD: Following demands from petroleum dealers, the State Bank of Pakistan (SBP) has capped bank charges on sales of petroleum products through digital payment methods — including debit and credit cards and online transfers — to minimise the financial burden on fuel stations and promote digital inclusion.
Under the decision, merchant discount rates (MDR) for card-based petroleum transactions have been capped at a maximum of Re1 per litre, while charges on online transactions conducted through QR codes and Raast have been capped at 20 paisas per litre.
Earlier, banks charged these transaction fees at their discretion, with rates varying from bank to bank and customer to customer. The charges ranged between 0.7pc and 1.5pc, resulting in a transaction cost of Rs3-4 per litre.
“This was too high compared to the fixed and regulated dealer commission of Rs8.64 per litre. After adding the 12pc withholding tax and other fixed charges, dealers were left with little option but to adopt dishonest means to survive,” explained Hassan Shah, spokesperson for the All Pakistan Petroleum Dealers Association (APPDA).
