Petrol pump dealers in Madhya Pradesh and other parts of the country have raised concerns over the proposed merchant discount rate (MDR) on UPI transactions, with some dealers warning that they may stop accepting UPI payments above Rs 2,000 from October 15.
According to NDTV Profit, petrol pump dealers have threatened to halt large-value UPI payments unless fuel retailers are exempted from the proposed 0.4% MDR. The move could affect customers who regularly use UPI to make higher-value fuel payments.
The dealers are seeking a complete waiver of MDR on UPI transactions at petrol pumps. They have argued that rising operating costs, along with unchanged fuel commissions, have made it difficult for them to absorb any additional transaction charges.
The All India Petroleum Dealers Association, as reported by ANI, has also sought a complete exemption from MDR on UPI payments made at petrol pumps.
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Meanwhile, IANS reported that petroleum dealers in Madhya Pradesh have demanded the withdrawal of the proposed UPI tax and called for fuel sales to be exempted from MDR.
The issue has also drawn concern from the Confederation of All India Traders (CAIT). PTI reported that CAIT described the proposed move by Madhya Pradesh petrol pump dealers to stop accepting UPI payments above Rs 2,000 as a serious concern.
If implemented, the proposed restrictions could make it more difficult for consumers to use UPI for larger fuel purchases, particularly at petrol pumps that adopt the limit.
