From today, 1st October, credit card payments done to buy fuel at petrol pumps will not get any discount. In order to promote digital payments, state-owned oil companies had introduced these discounts using credit/debit cards and e-wallets more than two-and-a-half years ago. However, discounts on debit cards and other modes of digital payments will continue for now.
"Dear SBI credit cardholder, as advised by public sector oil marketing companies, the 0.75 per cent cashback on fuel transactions will be discontinued with effect from October 1, 2019," the country's largest bank in a text message informed its credit card customers.
Following demonetisation in late 2016, the government had asked Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) to give a 0.75 per cent discount on card payments for fuel purchases after a widespread cash crunch.
According to a report in PTI, the three fuel retailers—IOC, BPCL and HPCL—paid ₹1,165 crore in e-payment discounts and ₹266 crore to banks for bearing MDR, totalling ₹1,431 crore in 2017-18. In 2018-19, the outgo almost touched ₹2,000 crore.
Beginning December 13, 2016, a discount of 0.75 per cent was offered to those using plastic money to buy petrol and diesel. This discount was given by way of cashback, which has been credited to the buyer's account within three days of the transaction.
Petrol currently costs at ₹74.61 per litre in Delhi, while a litre of diesel costs ₹67.49.