New Delhi, December 13: The discount of 0.75% on cashless payment for fuel, announced last week as part of a clutch of incentives to encourage use of electronic payment gateways, will come into effect from Tuesday. In a statement, the Indian Oil Corporation has said the amount of discount will be credited to customers account by way of cash back within maximum three working days of the transaction.
This will be borne by state-owned oil marketing companies (OMCs) Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL), said two OMC executives.
"As a part of these initiatives, to promote cashless transactions Government of India has announced to incentivize petrol/diesel customers transacting at PSU petrol pumps by way of 0.75 per cent discount when a customer uses Debit/Credit Cards, Mobile Wallets and Prepaid Loyalty Cards," the statement said.
“We are not looking at the Rs600-700 crore losses that we may incur, but the benefits that we will be deriving out of digitization. This will also strengthen our loyalty programmes,” said another senior OMC executive, also on condition of anonymity.
After announcing the demonetization of Rs500 and Rs1,000 currency notes on 8 November, the government allowed their use at petrol pumps and CNG filling stations initially and till 15 December in the case of Rs500 notes. Post-demonetization, OMCs have seen cashless transactions at their retail outlets double. “We have an arrangement with a few leading banks with regard to terminalization of our retail outlets and through them we have covered 56% of our retail outlet network for acceptance of credit/debit cards,” IOCL said in an emailed statement.
Finance minister Arun Jaitley had on Thursday said state-run fuel retailers will offer a discount of 0.75% to consumers who buy petrol and diesel using debit or credit cards and other digital methods such as mobile wallets and prepaid loyalty cards.