📷 Image: Wikimedia Commons / Snehrashmi
Business
Gujarat Fuel Dealers Petition for Exemption from 0.4% UPI MDR
✍️ The Times of India
🗓 18 Sep 2026, 06:01 AM
👁 7
Petrol retailers in Gujarat have approached authorities requesting relief from the newly imposed 0.4% merchant discount rate on UPI transactions.
Petrol station owners across Gujarat have formally written to the state government and the National Payments Corporation of India (NPCI) seeking an exemption from the 0.4% merchant discount rate (MDR) that was recently mandated for all UPI transactions. The dealers argue that the additional charge erodes already thin profit margins on fuel sales, which are subject to price caps and frequent tax adjustments.
The 0.4% MDR, introduced as part of a broader push to promote digital payments, is levied on merchants for each UPI transaction. While it is intended to offset infrastructure costs, the Gujarat fuel community says the rate disproportionately affects high‑volume, low‑margin businesses such as petrol pumps.
In their petition, the dealers request a temporary waiver until a detailed impact assessment can be conducted. They also propose a differentiated MDR structure that takes into account sector‑specific economics. The state government has acknowledged receipt of the request and indicated that it will review the matter in consultation with NPCI and the Ministry of Finance.
If granted, the exemption could set a precedent for other high‑volume retail sectors seeking relief from the uniform MDR policy. The outcome is expected to be discussed in the upcoming meeting of the Gujarat State Financial Services Committee.
The 0.4% MDR, introduced as part of a broader push to promote digital payments, is levied on merchants for each UPI transaction. While it is intended to offset infrastructure costs, the Gujarat fuel community says the rate disproportionately affects high‑volume, low‑margin businesses such as petrol pumps.
In their petition, the dealers request a temporary waiver until a detailed impact assessment can be conducted. They also propose a differentiated MDR structure that takes into account sector‑specific economics. The state government has acknowledged receipt of the request and indicated that it will review the matter in consultation with NPCI and the Ministry of Finance.
If granted, the exemption could set a precedent for other high‑volume retail sectors seeking relief from the uniform MDR policy. The outcome is expected to be discussed in the upcoming meeting of the Gujarat State Financial Services Committee.