BHOPAL: Petrol pump dealers in Madhya Pradesh may stop accepting UPI payments for transactions above Rs 2,000 from October 16, according to media reports.
The Madhya Pradesh Petrol Pump Dealers Association says the decision follows the application of a Merchant Discount Rate (MDR) on UPI transactions above the Rs 2,000 limit. The association claims that fuel transactions in this category attract a fixed MDR of Rs 5, with 18% GST taking the total cost to about Rs 5.90 per transaction.
Association president Ajay Singh reportedly said Madhya Pradesh has around 4,700 petrol pumps. He claimed that an average pump handles about 100 transactions above Rs 2,000 each day. Based on this estimate, the additional monthly cost could be around Rs 17,400 per pump.
The association estimates that the combined monthly burden across all 4,700 pumps could be about Rs 8.17 crore.
The dealers say fuel retail is a low-margin business and that rising costs, including staff salaries and electricity bills, are adding pressure.
Association vice-president Brijendra Singh Raghuvanshi reportedly said dealers believe the additional digital payment cost should be borne by oil companies.
The association has also said that while refusing cash payments may raise legal concerns, it believes there is no similar requirement forcing petrol pumps to accept digital payments.
The proposed move is based on claims and estimates made by the dealers’ association, and the actual impact may depend on applicable payment rules and transaction volumes.
