Press Information Bureau

Government of India

Ministry of Petroleum & Natural Gas

09-January-2017 16:28 IST

MoS (I/C) for Petroleum and Natural Gas, Shri Dharmendra Pradhan said neither the customers nor petrol pump dealers will bear additional charges on digital transactions at petrol stations. 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. Shri Pradhan said that there will be no additional levy on digital transaction at petrol stations even after 13 January, 2017. He also said that the Petrol pump transaction fee is a business model between the banks & oil marketing companies which they will resolve.

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RG/RK

No additional levy on card payments at petrol stations; MDR cannot be passed to consumers and must be absorbed. No additional charges will be imposed on card-based payments at petrol stations; the Government reaffirmed that the Merchant Discount Rate (MDR) must not be passed on to customers and that stakeholders are expected to absorb MDR costs. The petrol pump transaction fee is characterised as a commercial arrangement between banks and oil marketing companies to be resolved by those parties.