New Delhi: Petroleum minister Dharmendra Pradhan said on Monday that petrol pumps would continue to accept credit and debit cards even after January 13, and customers would not have to pay any transaction charges. He said that neither customers nor petrol pump dealers would bear any additional charges on digital transactions at petrol stations.
The minister said that the government had issued guidelines in February 2016 stating that a merchant discount rate (MDR) charge will not be passed on to consumers, and that stakeholders would take appropriate steps to absorb the fee.
“Petrol pumps will accept cards. I want to assure the people of the country who want to do digital transactions at petrol pumps that they will continue to do so. A 0.75 per cent cash back incentive that we have given to customers will also continue.”
There was high drama on Sunday over petrol pump owners’ threat to stop accepting credit and debit card payments in protest over imposition of upto 1 per cent transaction fee by certain banks.
However, intervention from top government officials and the petroleum minister saw banks postponing the decision to impose transaction fee till January 13 to resolve the issue in consultation with the petroleum ministry. After banks’ announcement, petrol pump owners too deferred their decision, and said that they would accept card payments for now.
Banks have demanded upto 1 per cent MDR on each transaction at petrol pumps. But petrol pump owners claimed that their margins are low, and they cannot bear MDR charges as it will result in financial losses.
Mr Pradhan said that petrol pump transaction fee was a business model between banks and oil marketing companies, which they would resolve. “Banks and oil marketing companies are discussing the issue. In the coming days, a mechanism will be worked out,” he said after meeting the finance minister.
