Ogra Orders Oil and Gas Sector to Adopt Digital Payments by October 31

The Oil and Gas Regulatory Authority (Ogra) has taken a big step towards a cashless economy. On Thursday, Ogra directed all licensed entities in the oil and gas sector to adopt digital payments by October 31, 2025.

The order applies to oil marketing companies, gas utilities, CNG stations, LPG and LNG operators, refineries, and lubricant marketers. These businesses must introduce and clearly display digital payment options at their outlets. The most important one is the State Bank of Pakistan’s Raast QR code, which should be available at every point of sale.

Ogra Orders Oil and Gas Sector to Adopt Digital Payments by October 31

According to Ogra, no outlet will be allowed to refuse customers who choose digital transactions. While people can still pay with cash, every business must provide digital alternatives. The aim is to make digital payments a normal practice across Pakistan.

Officials explained that this move supports the State Bank’s digitisation programme. It is designed to improve financial inclusion, increase transparency, and enhance efficiency in the energy sector. Companies have been told to work with banks, microfinance institutions, or electronic money providers to obtain free Raast QR codes and ensure smooth rollout.

“This initiative will facilitate consumers and strengthen Pakistan’s digital payment ecosystem,” Ogra said in its directive.

The order covers the entire oil and gas value chain. This means it applies to upstream, midstream, and downstream operations, including marketing, refining, transportation, storage, and distribution of petroleum products and natural gas. CNG, LPG, and LNG outlets are all part of the plan.

The decision was taken under the direct supervision of the prime minister. It was already under discussion before the FY26 budget as part of the government’s “war on cash.”

Petrol pumps across the country — from Karachi to Khyber and Azad Kashmir to Chaman — must now offer digital options such as QR code payments, debit and credit cards, and mobile wallets. This is in addition to the traditional cash method.

Authorities pointed out that QR codes are easier and cheaper compared to point-of-sale (POS) systems. POS machines require investment and maintenance, while QR solutions involve minimal cost. Countries like India, Indonesia, and Bangladesh have already used similar systems with success, greatly expanding cashless transactions.

See Also: SECP Strengthens Corporate Growth with Strategic Collaborations

Despite existing legal requirements, many businesses in Pakistan still resist digital payments. Even near the Federal Board of Revenue (FBR) headquarters in Islamabad, restaurants and shops often issue paper invoices and refuse to use digital payment tools. The government is hoping this new push will change that culture.

Alongside this directive, the government is also working on legislation for the digital tracking of petroleum products. The goal is to monitor fuel from import and production to retail sales. Officials believe this will help curb smuggling and adulteration. These illegal practices not only cause annual revenue losses estimated at Rs300-500 billion, but also damage engines and harm the environment.

By enforcing digital payments and introducing digital tracking, Pakistan is moving towards a more modern, transparent, and efficient energy sector. For consumers, this means convenience. For the government it promises better control and reduced losses.