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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.
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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.

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Business Today broke the news in India on Wednesday, September 16, 2026.
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