The majority of fuel stations under Oil Market Companies (OMCs) have stopped accepting payment via credit/debit cards for petrol and diesel. Banks are pocketing Rs. 3.45 in MDR from the margin of Rs.3.68 on a purchase via credit or debit cards.
The annual sale numbers of motor gasoline and diesel show that the country has used up 20 billion liters, of which 400 million liters were sold through credit and debit cards. This is because banks charge 1.5 percent MDR on one liter and earn Rs. 1.38 billion in MDR from OMC margins.
The oil industry recognizes the importance of improving Pakistan’s digital payment infrastructure but the current level of MDR charged on fuel transactions is unsustainable for the industry. The oil companies’ advisory council (OCAC) wrote a letter to the State Bank of Pakistan (SBP) on behalf of the OMCs.
The Oil and Gas Council of Pakistan (OCAC) has written to the SBP asking for a review of the Motor Fuel Dispute Rate (MDR) on fuel purchases. The MDR varies across the industry but banks charge an average of 1.5 percent at petrol pumps, OCAC said.