No Extra Charge at Petrol Pumps for Card Payments, Says Government

Indian fuel station. Credit: Reuters/File photo

Indian fuel station. Credit: Reuters/File photo

New Delhi: There would be no extra charge on card payments at petrol pumps, with oil minister Dharmendra Pradhan announcing that petrol pumps would continue to accept card payments post January 13. Pradhan’s announcement comes after petrol pumps said they would not accept any card payments from Monday, January 9, and then changing their stance late last night to say they had deferred a final decision till January 13.

In his announcement today, Pradhan said that “MDR (merchant discount rates) on card payments for fuel purchase will not be passed on to customers,” and that oil companies and banks are currently in discussions to determine who will bear MDR charges.

To promote cash-less transactions post demonetisation, the government had waived the MDR on fuel purchases for consumers. But after the expiry of the 50-day window, the banks had decided to levy MDR on petrol pump owners instead, prompting their decision to go cash-only. This charge would mean that petrol pump owners would have to bear the 1% cost on all credit card transactions and between 0.25% and 1% on all debit card transactions.