SBP extends fuel station card payment fee caps till Jan 2027

August 04, 2026 (MLN): The State Bank of Pakistan (SBP) has extended the capped Merchant Discount Rate (MDR) and Interchange Reimbursement Fee (IRF) on card-based fuel purchases till January 31, 2027, in a bid to accelerate the rollout of interoperable Raast QR-based payment acceptance at fuel stations across the country.

In a circular issued by SBP, addressed to presidents and chief executives of all banks, microfinance banks, electronic money institutions, payment system operators and payment service providers, the central bank referred to its earlier PSP&OD Circular Letter No. 01 of 2023 on the subject and directed that the pricing arrangement remain applicable for all payment cards issued in Pakistan.

Under the extended arrangement, the MDR for all card-present transactions at fuel stations for the purchase of fuel and related products will remain capped at Rs 1.00 per litre, while the IRF for such transactions will remain capped at Rs 0.20 per litre.

SBP has directed regulated entities to actively engage with their respective fuel station merchants during this period to ensure the enablement and availability of Raast QR-based payment acceptance for fuel and related product purchases.

The central bank said it will revisit these instructions on or around January 31, 2027, in light of market response to the pricing mechanism.

The instructions are effective with immediate effect, while all other provisions on the subject remain unchanged.

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