Oil marketing firms cut down digital payments incentive from 0.75 to 0.25 per cent

NEW DELHI: Discounts introduced post demonetisation to encourage digital payments at fuel stations have been cut sharply from August, with oil marketing firms informing dealers that the incentive has come down from 0.75 per cent to 0.25 per cent.

Introduced on December 13, 2016, the discount had been offered as a cashback credited to the buyer’s account within three days of the transaction.

According to dealer sources, the SMS sent by oil firms state that the cut will go into effect from August 1 “across the oil industry for all loyalty customers”.

The discount had been applicable for payments made using either credit/debit cards, e-wallets or mobile wallets and translated into a rebate of 57 paisa per litre on petrol and 50 paisa on diesel.

With the current cut in incentives, this discount has reduced to about 19 paisa per litre of petrol and 17 paisa per litre of diesel. Petrol is currently sold at Rs 76.43 per litre in Delhi, while a litre of diesel costs Rs 67.93.

Reports state that a flurry of other incentives for digital payments introduced immediately after demonetisation might also be cut. For instance, a 10 per cent discount on general insurance products purchased online and eight per cent on life insurance bought online was announced in December 2016. Railways passengers were encouraged to go cashless with a 0.5 per cent discount on monthly and seasonal tickets for suburban railway networks, and a 5 per cent discount for services like catering and use of waiting rooms purchased digitally. Digital payments made at toll plazas also attracted a discount of 10 per cent.

Slashed discounts
■ The discount had been offered as a cashback credited to the buyer’s account within three days of the transaction

■ The discount had been applicable for payments made using credit/debit cards, e-wallets or mobile wallets and translated into a rebate of 57p/litre on petrol and 50p on diesel