Petroleum dealers write to India’s Finance Minister Nirmala Sitharaman, demanding that the MDR (merchant discount rate) be scrapped for UPI payments above ₹2,000. They say the proposed charges—described in their letter as ₹5 on eligible transactions—could increase costs for fuel retail operations.
Dealers argue that fuel retailing already works on prescribed margins, leaving little room for additional fee impacts. They contend that passing on such charges would affect the economics of retail fuel sales and potentially raise consumer costs.
While the outlets reporting the issue focus on the dealers’ concerns and the mechanism of the UPI-linked MDR, the core points remain consistent: the request targets the MDR treatment for higher-value UPI transactions, and the argument centers on operational margin constraints in the fuel retail sector. The letter reflects dissent within sections of the petroleum distribution chain regarding the potential financial effect of these payment-related charges.
