Govt says customers won’t pay surcharge on cashless fuel purchase, in talks with petrol dealers | business-news | Hindustan Times
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Govt says customers won’t pay surcharge on cashless fuel purchase, in talks with petrol dealers

Negotiations are underway between banks and oil companies over the extra surcharge levied on fuel purchases made by a credit or debit card, the government said on Monday, while assuring that surcharge will not be imposed on both customers and petrol pump owners.

business Updated: Jan 09, 2017 10:40 IST
Minister of state Dharmendra Pradhan there would be no surcharge to be paid on cashless purchase of fuel from petrol pumps.
Minister of state Dharmendra Pradhan there would be no surcharge to be paid on cashless purchase of fuel from petrol pumps.(HT File Photo)

Negotiations are underway between banks and oil companies over the surcharge levied on fuel purchases made by credit or debit card, the government said on Monday, while assuring that surcharge will not be imposed on both customers and petrol pump owners.

“Let me make it clear that customers will not be levied with any surcharge. Petrol pumps were worried that they surcharge will be upon their heads, but let me assure them that it will not befall on them as well. Oil marketing companies and banks are in talks and the former has given an incentive to increase digital transactions,” Dharmendra Pradhan, Union minister of state for petroleum and natural gas, told ANI.

Further informing that the Centre has advised both the banks and the oil marketing companies that they need to come together and find out a solution, Pradhan asserted that all efforts are being made so that neither the customers nor the petrol pump owners are levied with any surcharge.

However, the Delhi Petrol Dealers Association (DPDA) has firmly denied charges that one percent surcharge was levied before demonetisation, asserting that the surcharge was imposed only at normal establishments and never at any petrol pumps.

“Let me clarify once again, as many news channels are saying that this one percent was levied before the demonetisation move but this was never done at any petrol pump across the country. This one percent surcharge was levied at normal establishments but not at petrol pumps,” DPDA president Anurag Narayan told ANI here.

Earlier, petrol dealers had announced that starting Sunday midnight, they would not accept the debit and credit cards of banks that would levy the extra charge.

The government intervened immediately into the alarming development, as petroleum dealers’ association had written to Union finance minister Arun Jaitley, informing him about the sudden decision by the banks to levy the transaction charge and their resolution to refuse card payments.

In an attempt to promote cashless transactions post demonetisation, the government had waived the MDR on fuel purchase for consumers, but following the expiry of the 50-day window, the banks decided to levy MDR on petrol pump owners.

In their letter to Jaitley, the All India Petroleum Dealers’ Association stated that as had been no mention of passing the charge to consumers, the dealers would sustain a loss.