Consumers and petrol pump dealers from today onwards no need to pay the transaction cost. The central government announced that there would be no extra charge added for the card payments at petrol pumps.
“Petrol pumps will continue to accept card payments post-January 13. Oil companies and banks are discussing who is to bear Merchant Discount Rate charges,” said Petroleum Minister Dharmendra Pradhan.
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According to the reports, petrol pump owners threatened to stop accepting Debit and Credit cards against one percent transaction fee by various banks. The banks and oil firms discussed the extra cost charged on card payments on fuel.
“The All-India Petroleum Dealers Association received an official communication from oil marketing companies (OMCs) that with the invasion of petroleum minister the transaction fee charges have been deferred until January 13, 2017. AIPDA also decided to defer the agitation until January 13, 2017,” said the association in a late night statement.
After the government had made an announcement regarding demonetisation, many implemented digital transaction facility. To promote cashless transactions after the notes ban on 8th November, the government insisted the Merchant Discount Rate on fuel.
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Close sources in the petroleum ministry said, “We are trying to negotiate with the banks so that they postpone taxing the transaction fee. On Monday, all parties can discuss and resolve the issue,” the source said.
But after introducing cashless payments, customers are exempted from paying these charges at petrol pumps. After the demonetisation, the state-run petrol dealers offered the cash-back on transactions.
The state-run petrol companies, Hindustan Petroleum, Indian Oil and Bharat Petroleum that operate petrol pumps asked banks to extend the date of 13th January.
