Govt. says no additional levy on use of cards at petrol stations
New Delhi, January 9, 2017
Union Minister for Petroleum and Natural Gas Dharmendra Pradhan today said neither customers nor petrol stations would have to bear additional charges on digital transactions at these outlets through the use of credit or debit cards.
Mr. Pradhan said that the Government had issued guidelines in February 2016 stating that the Merchant Discount Rate (MDR) charge would not be passed on to the consumers and that the stakeholders would take appropriate steps to absorb the MDR charges.
The Government has stepped in after the issue of levy on digital transaction at petrol stations was raised by the association of petrol pump dealers.
Mr. Pradhan said that there wouldbe no additional levy on digital transaction at petrol stations even after January 13.
He also said that the petrol pump transaction fee was a business model between the banks and oil marketing companies which they would resolve.
Petroleum dealers had announced earlier that they would not accept payments by cards at fuel outlets from today to protest against the decision of some banks to levy the MDR on purchases. Later, they deferred their decision till January 13 after the oil marketing companies informed them that the transaction charges had been kept in abeyance.
The dealers have argued that the levy on card transactions would eat into their profits.