Petrol dealers have raised concerns regarding the proposed 0.4 percent Merchant Discount Rate (MDR) on transactions exceeding Rs 2,000. Dealers are actively seeking an exemption from these costs, warning that such fees would create an additional financial burden on their operations.
Impact of MDR Charges on Fuel Retailers
The core issue facing petrol dealers is the potential for a margin squeeze. According to dealers, the imposition of a 0.4 percent fee on higher-value transactions directly impacts their bottom line. As fuel stations operate on specific margins, the introduction of this fee for digital payments over Rs 2,000 is a point of significant concern for the industry.
Why Dealers Are Seeking Exemption
Dealers have highlighted that the current financial structure does not easily absorb the additional costs associated with MDR charges. By seeking an exemption, they aim to protect their existing margins. The industry continues to monitor the situation closely, as these transaction fees directly affect the daily operations of fuel outlets across the country.
