Archive · 17 Sep 2026
Petrol Dealers Threaten Cash-Only Payments Over Revised UPI Charges
Petrol pump owners use UPI to receive digital payments from customers.
A new rule may charge them a fee on some UPI payments above Rs 2,000.
The reported charge is 0.4% of the payment.
Dealers say this fee would hurt because their earnings on each litre of fuel are already small.
Some dealers have threatened to stop accepting large UPI payments.
Customers might then have to use cash for those purchases.
Mumbai dealers warned that pumps there could stop taking UPI payments from October 15.
They have asked the government and the RBI to remove the charge for petrol pumps.
Dealers in several other parts of India have also raised similar concerns.
Petrol dealers nationwide threatened to stop accepting UPI payments of Rs 2,000 and above.
Mumbai petrol pumps may discontinue UPI payments from October 15 if the charges remain.
The Petrol Dealers Association of Mumbai sought a complete MDR waiver from the RBI and Finance Ministry.
The revised policy introduces a 0.4% MDR on person-to-merchant UPI transactions above Rs 2,000, with some small and micro merchants exempted.
Dealers say any MDR would further reduce margins of roughly Rs 2.40-3.40 per litre, which are determined through government oil marketing companies.
- Who
- Petrol pump dealers across India, including the Petrol Dealers Association of Mumbai, and the Centre, RBI and Finance Ministry.
- What
- Dealers threatened to stop accepting UPI payments of Rs 2,000 and above unless petrol pumps are exempted from the revised MDR.
- When
- Mumbai dealers warned that UPI payments could be discontinued from October 15; the reports do not specify the year.
- Where
- Across India, with specific concerns raised in Mumbai, Delhi NCR, Punjab, Uttar Pradesh, Karnataka and Rajasthan.
- Why
- Dealers say the MDR would add to their costs and further squeeze margins of around Rs 2.40-3.40 per litre.
Petrol dealers
Current MDR policy
Whether petrol pumps should pay MDR
Petrol dealers
Dealers want petrol pumps exempted from the revised MDR and say any such charge is an additional burden on already narrow margins.
Current MDR policy
The Centre has introduced a 0.4% MDR on person-to-merchant UPI transactions above Rs 2,000, while exempting certain small and micro merchants.
Response to the charges
Petrol dealers
Dealers threatened to withdraw UPI facilities for payments of Rs 2,000 and above, with Mumbai pumps warning of possible discontinuation from October 15.
Current MDR policy
The reported policy continues to apply the revised MDR to transactions covered by its threshold unless an exemption is granted.
- UPI threshold
- Transactions above Rs 2,000.
- Revised MDR
- 0.4% on person-to-merchant UPI transactions above Rs 2,000.
- Earlier reported proposal
- A flat Rs 5 MDR per transaction was cited by dealers in the broader nationwide warning.
- Mumbai deadline
- Petrol pumps in Mumbai may stop accepting UPI payments from October 15 if no exemption is granted.
- Dealer demand
- The Petrol Dealers Association of Mumbai requested a complete MDR waiver for petrol pumps.
- Reported margins
- Dealers said their margins are around Rs 2.40-3.40 per litre.
- Exemptions
- Certain small and micro merchants are exempt from the revised MDR, according to the report.
