UPI Fuel Payments Above Rs 2,000 to Attract Flat Rs 5 MDR for Petrol Pumps: NPCI
New Delhi, 19th September 2026: Fuel purchases made at petrol pumps through UPI will attract a flat ₹5 Merchant Discount Rate (MDR) for transactions above ₹2,000, according to the National Payments Corporation of India (NPCI).
The special concessional MDR structure has been introduced to ensure that petrol pump operators can continue accepting UPI payments at low and predictable costs, NPCI said.
Under the structure, there will be no MDR on fuel payments of up to ₹2,000 made through UPI. This means petrol pump operators will not have to pay any fee on UPI fuel transactions where the payment amount is ₹2,000 or less.
For fuel payments above ₹2,000, petrol pump operators will pay a flat MDR of ₹5. The charge will remain the same regardless of the total value of the fuel purchase.
For instance, if the fuel bill is ₹2,500, ₹5,000 or ₹10,000, the petrol pump operator will pay only ₹5 as MDR on the UPI transaction.
NPCI clarified that UPI remains free for consumers. Customers will continue to pay only for the fuel they purchase and will not be required to pay the MDR separately.
According to NPCI, the concessional structure is significantly lower than the charges generally applicable to other payment instruments, including credit cards, debit cards and wallets.
The move provides petrol pump operators with a predictable transaction cost for higher-value UPI fuel payments while keeping smaller transactions completely free of MDR.
The NPCI said the structure is aimed at supporting the continued acceptance of UPI at petrol pumps and facilitating digital payments without imposing significant transaction costs on fuel retailers.
