You are connecting from Lake Geneva Public Library, please login or register to take advantage of your institution's Ground News Plan.
Published 1 day ago • loading... • Updated 10 hours ago
Petrol Dealers Call For Rs 5 MDR Charge Exemption On UPI Payments; Will Consider Going Cash-Only For Payments Over Rs 2,000
Dealers say the fee will cut into fixed margins of Rs 2.40-Rs 3.40 per litre and could add Rs 50,000-Rs 60,000 a month for some outlets.
Petrol dealers across India are seeking an exemption from the Merchant Discount Rate for fuel transactions beginning October 15, arguing that mandatory fees threaten thin, regulated margins.
Dealers operate on fixed margins ranging between Rs 2.40 and Rs 3.40 per litre set by Oil Marketing Companies, so a flat Rs 5 charge on transactions above Rs 2,000 directly erodes their regulated earnings.
K. Suresh Kumar, general secretary of the Consortium of Indian Petroleum Dealers, estimated high-volume city and highway stations face additional monthly expenditures of Rs 50,000-60,000 due to the MDR charge.
United Petroleum Dealers Association general secretary M. Amarender Reddy said on Wednesday that penalizing dealers for accepting digital payments is inequitable and protecting margins is necessary for continued UPI adoption.
The All India Petroleum Dealers Association and Akhila Karnataka Federation of Petroleum Traders have formally requested government relief, while some operators consider reverting to cash-based transactions for payments exceeding Rs 2,000.
Protests have started across the country regarding the additional charges on UPI payments. In many places, petrol-pump operators are protesting by setting up No UPI Only Cash boards.