Pune Petrol Dealers Seek MDR Relief, Say Digital Payments Must Not Burden Fuel Retailers

Pune, 19th September 2026: The Petrol Dealers Association Pune (PDAP) and the Federation of All Maharashtra Petrol Dealers Associations (FAMPEDA) have appealed to the Centre to exempt petroleum retail outlets from Merchant Discount Rate (MDR) and other transaction-related charges on digital payments.

The associations said petrol dealers support the Government of India’s Digital India initiative and have consistently facilitated payments through UPI, QR codes, cards and other digital modes at fuel stations.

However, they said the proposed MDR is a concern for dealers because petroleum retailing operates under regulated prices and prescribed dealer margins.

Dhruv Ruparel, President of PDAP and Vice President of FAMPEDA, said the dealers’ concern was not about digital payments but the financial burden associated with facilitating them.

“Petrol dealers stand firmly with Digital India. We have always supported the Government’s digital-payment initiatives and have played our part in making digital payments easily available to consumers at fuel stations. Our concern is only about the additional financial burden of MDR on a business operating with regulated and limited margins,” Ruparel said.

He said fuel is an essential requirement and consumers should be able to choose digital payment methods without disruption.

“At the same time, the cost of providing this facility should not make essential fuel retailing financially unsustainable. We therefore respectfully appeal to the Government to consider appropriate relief from MDR for petroleum dealers,” Ruparel said.

FAMPEDA has sought an appointment with Union Finance Minister Nirmala Sitharaman to discuss the issue and present transaction data and details of the financial impact on petroleum dealers.

Ruparel said the association was seeking a solution through dialogue with the government.
A national-level meeting of petroleum dealers is scheduled for September 27, where MDR and the continued acceptance of UPI payments will be discussed. The collective way forward is expected to be decided after considering the various aspects of the issue.

The associations said their objective was not to discourage digital payments but to ensure that the cost of enabling digital transactions does not disproportionately affect petroleum dealers or eventually affect consumer convenience.

FAMPEDA has formally submitted its
representation to the concerned authorities and offered to provide transaction data and participate in further discussions.