Maharashtra petrol pump owners urge Centre to waive digital payment charges and MDR, citing threat to fixed profit margins. (File)Petrol pump owners across Maharashtra have appealed to the union government for a complete waiver of Merchant Discount Rate (MDR) and other digital payment charges on fuel purchases, saying that any such levy would eat directly into their already fixed and regulated profit margins.The Federation of All Maharashtra Petrol Dealers Associations (FAMPEDA) has written to the Union Finance Ministry, the Ministry of Petroleum and Natural Gas, the Reserve Bank of India, the National Payments Corporation of India (NPCI), and the marketing directors of Indian Oil, Bharat Petroleum and Hindustan Petroleum, seeking urgent intervention on the issue.At the heart of the dealers’ concern is a reported proposal to levy a charge of 0.4 per cent on UPI transactions above Rs 2,000 – a threshold that a large share of fuel purchases routinely cross, given that filling even a two-wheeler or car tank at current petrol and diesel prices often exceeds that amount.In its letter dated September 18, FAMPEDA pointed out that petrol and diesel prices, as well as dealer margins, were fixed by the government and oil marketing companies (OMCs) on a per-litre basis, leaving dealers with no independent authority to revise pump prices or their commission to offset new costs. Any MDR or transaction fee, the federation argues, would therefore be absorbed entirely out of an already thin and non-negotiable margin, rather than passed on to customers.Petrol dealers have been quick to clarify that their objection is not to digital payments themselves. Both FAMPEDA and the Petrol Dealers Association Pune (PDAP) say they have actively enabled UPI, QR-code payments, card swipe machines and fleet cards at fuel stations in line with the government’s digital and cashless economy push.Dhruv Ruparel, president of PDAP and vice-president of FAMPEDA, said, “Petrol dealers stand firmly with Digital India and have always supported the government’s payment initiatives.” His concern, he said, is the additional financial burden that MDR would place on a business that already operates on regulated and capped margins.He added that fuel is an essential need for every citizen, and while customers should be free to pay digitally without any hassle, the cost of offering that facility should not make fuel retailing unviable.Story continues below this adBeyond the MDR issue, FAMPEDA’s letter raises two related worries. It cautions that simply shifting the MDR burden onto oil marketing companies is not a lasting fix, citing past instances where fintech partners and payment-service providers delayed settlement of sale proceeds, made non-transparent deductions, or charged high rentals and maintenance fees for POS/EDC machines – costs that dealers fear could eventually be passed back to them indirectly.The federation has also flagged a separate but connected problem: bank accounts of petrol dealers being frozen or placed under lien after cyber-fraud complaints linked to customer transactions. Since a single outlet processes hundreds of digital transactions daily, a dispute or fraud complaint by even one customer can result in a portion of the dealer’s account being frozen during investigation, disrupting genuine business funds. FAMPEDA has asked for a time-bound review and grievance-redressal mechanism to release such lien amounts faster.In its representation, FAMPEDA has sought complete exemption of petroleum retail outlets from MDR and all equivalent digital-payment charges regardless of transaction value, recognition of fuel outlets as a special category of merchants given their regulated pricing and fixed margins, and clear directions to banks, payment-service providers and NPCI that no such charge be recovered from dealers directly or indirectly.The association has stated that it is willing to share transaction data and participate in a detailed meeting with the concerned authorities.Story continues below this adA national-level meeting of the petroleum dealer fraternity is also scheduled for 27 September. The issue of MDR and the continued acceptance of UPI payments will be discussed comprehensively, and the collective way forward will be decided after considering all aspects.Shubham Kurale is a journalist based in Pune and has studied journalism at the Ranade Institute. He primarily reports on transport and is interested in covering civic issues, sports, gig workers, environmental issues, and queer issues. X:@ShubhamKurale1 ... Read MoreClick here to join Express Pune WhatsApp channel and get a curated list of our stories