New Delhi, Sept 21: The state-owned oil corporations may no longer provide cashback on payments made for petrol and diesel using debit/credit cards or e-wallets. According to reports, the three major Oil Marketing Companies (OMCs) are considering to roll-back the 0.75 per cent discount offered to customers using digital mode for payments.

The cashback on digital payments was extended on the government's instruction in November 2016, when the nation was facing cash crunch post the demonetisation of high currency notes. Although the cash-crunch ceased to exist in the subsequent months, the discount was continued in a bid to promote cashless transactions. Will Petrol Prices Reach Rs 100 Mark? Thanks to Pump Machines, Fuel Rates Can't Be Raised Above Rs 99.99/Litre!

The OMCs - Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) - have collectively faced a burden totalling Rs 1,165 crore in 2017-18 due to the discount, apart from Rs 266 crore lost as merchant discount rates.

A senior OMC official, while speaking to reporters, said the card transactions have increased from 10 per cent in the last fiscal to 25 per cent in the current year. At this rate, the OMCs expect a payout of more than Rs 2,000 crores in form of discounts by the year-end.

The oil corporations have reportedly met in the past few days to press the government to allow the roll-back on discount offered on card transactions. The OMCs are keen on ending the cashbacks as they are gearing up for losses which are likely to be incurred ahead of the five-state elections later this year, along with the Lok Sabha elections in April-May next year. In run-up to the polls - as seen ahead of Karnataka's electoral contest - the government reportedly bars the OMCs from revising rates on daily basis.

(The above story first appeared on LatestLY on Sep 21, 2018 05:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).