No additional levy on use of cards at petrol stations says Petroleum Minister

He said that the Government had issued guidelines in February 2016 stating that the Merchant Discount Rate (MDR) charge will not be passed on to the consumers and that the stakeholders will take appropriate steps to absorb the MDR charges.

The government has stepped in after the issue on levy on digital transaction at petrol stations was raised by association of petrol pump dealers.

Pradhan said that there will be no additional levy on digital transaction at petrol stations even after Jan 13.

He also said that the Petrol pump transaction fee is a business model between the banks & oil marketing companies which they will resolve.

The All India Petroleum Dealers Association (AIPDA) had said on Sunday that petrol pumps will stop accepting payments through credit and debit cards starting Monday in protest against the additional charge levied by banks on such transactions, media reported.

The decision to not accept the cards was later deferred to Jan 13 after banks deferred their decision to charge transaction fee (Merchant Discount Rate or MDR) for card payments at petrol pumps.

Following the demonetisation scheme floated in November and the push towards cashless transactions or digital payments, the government had waived the MDR for fuel purchase. But the banks decided to implement the charges after the 50-day period of banned note submission was over.

Image:  twitter.com/dpradhanbjp