Stories
Maharashtra Petrol Dealers Demand UPI MDR Waiver, Citing Fixed Margins
- •Petrol pump owners in Maharashtra urge the Central government to exempt fuel purchases from Merchant Discount Rate (MDR) and all digital payment charges.
- •The Federation of All Maharashtra Petrol Dealers Associations (FAMPEDA) has written to key ministries and financial bodies, seeking immediate action.
- •Dealers highlight that their margins are fixed by the government and OMCs, making it impossible to pass on additional costs like the proposed 0.4% UPI charge on transactions over Rs 2,000.
- •Concerns also include delays in payment settlements, unexplained deductions, high rental charges for POS/EDC machines, and bank account freezes due to cyber fraud complaints.
- •FAMPEDA requests special merchant status for fuel outlets and a complete exemption from MDR and similar digital payment charges, with a national meeting scheduled for September 27.
Key Questions Answered
Petrol dealers are requesting a waiver because their fuel prices and commissions are strictly fixed by the government and oil marketing companies, leaving them with thin margins and no room to absorb additional digital transaction charges. Any merchant discount rate or processing fee would directly diminish their earnings since they cannot pass these costs onto customers.
The Federation of All Maharashtra Petrol Dealers Associations highlighted problems with delayed sale proceeds, unexplained deductions, and high rental costs for point-of-sale machines. Additionally, when cyber fraud complaints are filed, banks sometimes freeze or place a lien on dealers' accounts during investigations, blocking access to legitimate funds from daily operations.
A national-level meeting of petroleum dealer associations is scheduled for September 27 to discuss the proposed merchant discount rate on UPI transactions and the future of digital payments at fuel stations.
