Bhubaneswar: Petroleum product dealers in Odisha on Thursday said they would not pass on any proposed UPI transaction charges to consumers, amid concerns that purchases above Rs 2,000 could attract a merchant discount rate (MDR). The dealers said the Centre should either exempt petrol pumps from such charges or ask oil marketing companies to adjust the cost by revising their fixed commission margin.Utkal Petroleum Dealers’ Association president Sanjay Lath said the association has begun discussions with the Union finance ministry, seeking exemption for fuel transactions above Rs 2,000 from the proposed MDR. “The reported 0.4% charge will create an additional financial burden on petrol pump operators, who do not have the freedom to alter prices or profit margins. We are not like other traders who can sell a product by increasing or decreasing their profit margins. We work under a regulatory framework where the dealer margin is fixed by the oil marketing companies. We cannot absorb or adjust such costs like other traders. So, we will not pass on any proposed UPI transaction charges to consumers,” Lath said, adding the association would first request the finance ministry to waive the MDR on fuel purchases.“If the govt decides to go ahead with the levy, the dealers will seek a direction for the oil marketing companies to increase the dealer margins so that the charges can be covered without affecting the customers. If such steps are taken by the govt, both consumers and petrol pumps will remain unaffected,” Lath said.A member of the association said no agitation or immediate action has been planned so far. The dealers are waiting for a response from the Centre before deciding their next course of action.The concern has also triggered discussion among customers, particularly those who rely on UPI for high-value fuel payments. Sushil Nayak, a Bhubaneswar resident, said many customers may return to cash or card payments if additional charges are introduced. “It seems we may go back to the pre-UPI period and pay in cash or by debit and credit cards. But the flexibility and seamless experience of the UPI cannot be matched by cash or other payment modes,” Nayak said.Dealers said digital payments have become a preferred option at fuel outlets, and any charge in such transactions could discourage UPI use.
