Punjab-Haryana Petrol Pump Dealers Announce UPI Payment Boycott Over MDR Charges
Petroleum dealers in Punjab and Haryana have announced a decision to stop accepting UPI payments in protest against merchant discount rate (MDR) charges, according to the association's representatives. The move could inconvenience motorists who routinely use digital payments to purchase petrol and diesel. Punjab president Paramjit Singh Doaba and spokesperson Monty Sehgal said petroleum dealers were already facing pressure due to low profit margins and policies of oil marketing companies. They argued that dealers could not absorb additional transaction costs from their fixed margins.
“We will not bear the loss caused by MDR out of our fixed margins,” the representatives said.
What Is MDR?
Merchant Discount Rate (MDR) is a fee associated with certain digital payment transactions, generally charged to merchants by banks or payment service providers. It should not automatically be confused with a fee directly charged to customers for every UPI payment. The source report states that a charge of 0.4% on UPI transactions above ₹2,000 was recently permitted. However, the precise scope and applicability of this reported rule require verification against an official government or payments-industry notification.
The dealers' announcement has raised concerns about possible disruption for customers who rely on UPI at fuel stations. The association's stated position is that additional payment-related costs would add to the financial pressure on petroleum retailers.
