Archive · 19 Sep 2026
Petroleum Traders Seek Relief From Proposed UPI MDR Charges
Petroleum dealers in Andhra Pradesh are worried about a new UPI payment charge.
The charge would be 0.4% on certain UPI payments above Rs 2,000.
Dealers say this would increase their expenses.
They cannot easily raise fuel prices because prices are regulated.
They also receive fixed margins on every litre of fuel sold.
Dealers want the government to remove the charge for fuel stations or make oil companies pay it.
They have asked officials and major oil companies for help.
If they do not receive relief, they may encourage customers to use cash instead.
Andhra Pradesh petroleum traders want fuel outlets exempted from or reimbursed for proposed UPI MDR charges.
The proposed 0.4% MDR would apply to specified person-to-merchant UPI transactions above Rs 2,000.
Dealers say regulated fuel prices and fixed margins leave little room to absorb added costs.
Petrol and diesel dealers cited margins of Rs 3.54 and Rs 2.25 per litre, respectively.
Traders warned they may favor cash payments if no exemption or reimbursement is provided.
- Who
- Andhra Pradesh petroleum traders and fuel dealers, represented by the Andhra Pradesh Federation of Petroleum Traders.
- What
- They are seeking an exemption from proposed UPI MDR charges above Rs 2,000 or asking oil marketing companies to absorb the charges.
- When
- The request concerns the proposed 0.4% MDR on specified UPI transactions above Rs 2,000; the articles do not provide a specific implementation date.
- Where
- The issue was raised in Vijayawada, with representations submitted by petroleum traders across India.
- Why
- Dealers say regulated fuel prices, fixed margins and rising operating costs make it difficult to absorb another payment expense.
Petroleum Traders
Proposed UPI Charge Framework
Who should bear the cost
Petroleum Traders
Dealers say retail fuel outlets should be exempted or oil marketing companies should absorb the 0.4% charge because dealers have fixed margins and rising costs.
Proposed UPI Charge Framework
The proposed framework would apply a 0.4% MDR to specified person-to-merchant UPI transactions above Rs 2,000; the articles do not report an official response from the government or oil companies.
Effect on payments
Petroleum Traders
Traders warn that they may favor cash transactions at fuel outlets to avoid the additional charge.
Proposed UPI Charge Framework
The proposed charge would continue to apply to the specified UPI transactions unless an exemption or other relief is granted.
- Proposed MDR
- 0.4% on specified person-to-merchant UPI transactions above Rs 2,000.
- Diesel dealer margin
- Rs 2.25 per litre.
- Petrol dealer margin
- Rs 3.54 per litre.
- Requested relief
- Exemption for retail fuel outlets or absorption of charges by oil marketing companies.
- Representations sent to
- Union Finance Minister Nirmala Sitharaman, the Union petroleum ministry secretary, and the heads of BPCL, HPCL and IOCL.
- Potential response
- Dealers may prefer cash transactions at fuel outlets if relief is not provided.