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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, making a flat Rs 5 charge on transactions above Rs 2,000 a direct hit to earnings.
- K. Suresh Kumar, general secretary of the Consortium of Indian Petroleum Dealers, estimated that high-volume city and highway stations face monthly expenditures of Rs 50,000-60,000 due to the MDR charge.
- M. Amarender Reddy, general secretary of the United Petroleum Dealers Association, said on Wednesday that "protecting the thin regulated margins of dealers is necessary both for viability of the retail network and for continued high adoption of UPI at fuel stations."
- The All India Petroleum Dealers Association and Akhila Karnataka Federation of Petroleum Traders have formally requested government relief, while some operators are considering reverting to cash-based transactions for sales exceeding Rs 2,000.
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Total News Sources20
Leaning Left1Leaning Right3Center1Last UpdatedBias Distribution60% Right
Bias Distribution
- 60% of the sources lean Right
60% Right
L 20%
C 20%
R 60%
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