1 hr ago
Petrol Dealers Threaten Cash-Only Payments Over UPI Charges
Petrol pump dealers say digital payments could become too expensive for them.
They are concerned about a possible Rs 5 fee on some UPI transactions.
The fee is called a merchant discount rate, or MDR.
Dealers say their earnings are already very small.
They earn about Rs 2.40-3.40 per litre, according to the report.
If the fee is imposed, they may stop accepting UPI payments of Rs 2,000 or more.
Customers would then need to pay those amounts in cash.
Dealers from several parts of India have raised this concern.
Petrol pump dealers across India threatened to stop accepting UPI payments of Rs 2,000 and above.
The proposed change would shift those transactions to cash payments.
Dealers object to a possible flat merchant discount rate of Rs 5 per transaction.
They say any MDR would further reduce their wafer-thin margins of around Rs 2.40-3.40 per litre.
Dealers in Delhi NCR, Punjab, Uttar Pradesh, Mumbai, Karnataka and Rajasthan raised the concern.
- Who
- Petrol pump dealers across India, including dealers in Delhi NCR, Punjab, Uttar Pradesh, Mumbai, Karnataka and Rajasthan.
- What
- They threatened to stop accepting UPI payments of Rs 2,000 and above and use cash instead if a flat Rs 5 MDR is imposed per transaction.
- Where
- India, including Delhi NCR, Punjab, Uttar Pradesh, Mumbai, Karnataka and Rajasthan.
- When
- Why
- Dealers say the proposed MDR would further squeeze their margins of around Rs 2.40-3.40 per litre.
Key facts
- Proposed charge
- A flat merchant discount rate of Rs 5 per transaction.
- Affected payments
- UPI payments of Rs 2,000 and above.
- Dealers' threatened response
- Switching to cash-only payments for the affected transactions.
- Reported dealer margins
- Around Rs 2.40-3.40 per litre.
- Margin determination
- Margins are determined by the government through its oil marketing companies.
- Regions cited
- Delhi NCR, Punjab, Uttar Pradesh, Mumbai, Karnataka and Rajasthan.
Sources
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