Petrol pump dealers across Madhya Pradesh and several other parts of India are warning that they may stop accepting UPI transactions above ₹2,000 starting October 15 unless authorities grant a complete exemption from a newly proposed fee structure.
Why Petrol Dealers Are Protesting
The standoff centers around a proposed 0.4% Merchant Discount Rate (MDR) on UPI fuel payments.
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Shrinking Margins: According to the All India Petroleum Dealers Association (AIPDA) and regional dealer bodies, fuel commissions have remained unchanged while operating costs continue to rise. Dealers argue they cannot absorb additional transaction charges without taking a severe hit to their profitability.
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The Demand: Dealers are pushing for a complete waiver of MDR on all fuel purchases made via UPI.
Potential Impact on Consumers
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Stricter Payment Limits: If implemented on October 15, motorists filling up larger quantities—such as full tanks or commercial vehicles—will find their UPI payments rejected if they exceed the ₹2,000 threshold.
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Broader Trader Concerns: The Confederation of All India Traders (CAIT) has flagged the unfolding situation as a serious concern, noting that similar resistance and warning notices are cropping up among traders in regions like Ghaziabad over digital transaction fee disputes.
With the October 15 deadline approaching, motorists and commercial drivers who rely on seamless digital payments at the fuel station may need to keep alternative payment methods—such as cash or legacy credit/debit cards—handy.
