As common as making payments through UPI has become across the country, now a new problem seems to be arising regarding it. Petrol pump operators of the country are very worried and confused regarding the proposed Merchant Discount Rate (MDR) on UPI transactions of more than Rs 2,000. Dealers fear that this new provision may make a big dent in the limited profits already fixed by the government, which is why they have started advocating strongly for keeping petrol pumps completely out of this new rule.

Old bitter experience and emphasis on cash payment

Keeping in mind their past experiences, petrol pump owners do not want the petroleum companies to pay such charges. Let us tell you that about 400 petrol pumps operate in Delhi alone and about one lakh petrol pumps operate across the country. Considering the situation, now such reports have started coming out from some parts of the country where more emphasis is being given on cash payment instead of UPI payment at petrol pumps.

Pump operators clearly claim that every day a good number of such transactions take place whose amount is more than Rs 2,000. If a flat fee of even Rs 5 is imposed on each such transaction, it will severely impact their already limited profits.

Protest letter sent to government and RBI

Amidst this growing controversy, recently 'United Petroleum Dealers Association' (UPDA) has sent a formal letter to the Union Finance Minister, Petroleum and Natural Gas Minister, Governor of Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI). Through this memorandum, it has been demanded that all the fuel outlets i.e. petrol pumps in the country should be kept completely free from any kind of digital duty or MDR.

Compulsion of essential commodities like petrol and diesel

Association President Nischal Singhania and other prominent officials have emphasized in their memorandum that petrol and diesel are extremely essential commodities. The selling rates of these products and the dealers' commission per liter are solely decided by the government and the oil marketing companies.

Dealers have no right to raise selling prices at their own discretion or alter their margins to cover any additional costs. He also clarified that somehow transferring the burden of MDR to the oil companies is not the right solution, because earlier when payments were made through cards, the dealers had to face many problems like delay in payment, unclear deductions and rent of swipe (POS) machines.

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