KARACHI: A number of fuelling stations in country are not accepting credit, debit, or privilege cards as petroleum dealers and banks remain at odds over merchant charges, it was reported.

A source informed that profit margin of pump owners is lower compared to cash transactions since banks are collecting merchant charges of Rs 1.60 to Rs 1.75 per litre of petrol from petroleum dealers who allow use of credit and debit cards at their stations.

“When gas prices were lower and pump sales were higher, relevant oil marketing corporations used to cover half of merchant charges levied by petrol dealers for transactions made with credit and debit cards, but things have changed now,” said Shoaib Khanji a petroleum dealer. He said that petroleum product prices have increased resulting in lower sales volumes and higher business costs for dealers.

“Owners of petrol pumps do not take credit, debit, or privilege cards because petroleum dealers are having trouble covering merchant fees with their low rate of profit,” he added and said State Bank of Pakistan needs to step in to resolve issue.

Chairman of Pakistan Petroleum Dealers Association Abdul Sami Khan said that they are negotiating with Pakistan State Oil authorities to recoup their share of merchant charges. “Credit and debit cards, which are mostly utilised by customers who live in posh and wealthy areas, accounted for around 15 percent of all petroleum transactions,” said Sami.

However, PSO officials said, “Even though dealers boost sales volume of same oil marketing companies by accepting consumer credit and debit cards, it is challenging for them to recoup their share of merchant charges”. However, oil marketing company Gas and Oil (GO) has made it clear that they have not sent any directives to their petroleum dealers telling them not to accept payments made using credit or debit cards.

Meanwhile, a National Bank spokesman said, “Banks continually operate their credit and debit cards and they charge petroleum dealers in accordance with guidelines and clearance from State Bank.”

Published in The Daily National Courier, September, 27 2022

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