New Delhi, Sept. 16 -- Petrol pump dealers are pushing the government to exempt fuel stations from a new charge on Unified Payments Interface (UPI) payments set to take effect next month, warning that thin margins could make it uneconomical to absorb the fee and, in some cases, force them to stop accepting UPI payments above Rs.2,000.

Petrol dealers' associations from across the country have made representations to the ministries of finance and petroleum, seeking an exemption from the flat Rs.5 merchant discount rate (MDR) that will apply to fuel transactions above Rs.2,000 under the new UPI framework.

The finance ministry, which announced the new framework on Tuesday, said a 0.4% MDR will apply to person-to-merchant (P2M) UPI transacti...