Petroleum dealers oppose MDR on fuel, seek exemption

Petroleum dealers have voiced concern over the Merchant Discount Rate framework, particularly the flat ₹5 MDR on fuel transactions above ₹2,000 that they need to pay beginning October 15.

A large proportion of fuel sales are high value transactions that routinely exceed ₹2,000. Any additional charge would erode the dealer margin, United Petroleum Dealers Association general secretary M.Amarender Reddy said on Wednesday.

Appealing to the government for exemption of all petroleum retail outlets from any MDR, irrespective of the transaction value, he said “protecting the thin regulated margins of dealers is necessary both for viability of the retail network and for continued high adoption of UPI at fuel stations”.