New Delhi, Sept. 16 -- The All India Petroleum Dealers Association requests complete exemption of petrol pumps from MDR on UPI transactions above Rs 2000.

The association highlighted that levies on UPI payments directly erode dealer earnings, which operate on fixed margins rather than transaction values. The association's President, Ajay Bansal, wrote a letter to the Finance Minister on Wednesday seeking intervention on payment processing costs.

"Dealer margins are determined by the Oil Marketing Companies (OMCs) under the guidance of the Ministry of Petroleum and Natural Gas and are primarily fixed on a per-litre basis, rather than as a percentage of the transaction value. Dealers therefore have no mechanism to increase their earnings ...