Punjab: Petrol pumps may not accept UPI payments above Rs 2,000; dealers' association writes to Centre, seeks exemption
PTC News Desk: If you also fill up your vehicle at petrol pumps and make payments online, you may need to be cautious. UPI payments above ₹2,000 at petrol pumps could soon be discontinued. There is growing concern over the Centre’s move to introduce charges on UPI transactions, following which the Petrol Pump Dealer Association has issued a warning.
The Punjab Dealers Association has opposed the government’s proposed Merchant Discount Rate (MDR) on UPI payments. The association said petrol pump dealers are already operating on low margins while their expenses remain high, making it difficult for them to absorb the additional cost.
What Will happen if UPI payments are not accepted
If the payment facility is discontinued at petrol pumps, it could create problems for owners of cars, buses, trucks and other commercial vehicles, apart from two-wheelers. The move could be particularly difficult for people travelling long distances who prefer to refuel their vehicles before or during their journey.
The dealers have also threatened to go on strike, demanding that the decision to impose charges on UPI payments be withdrawn.
Punjab has around 4,104 petrol pumps. According to figures cited from the National Payments Corporation of India (NPCI) for August 2026, petrol pumps in Punjab process an estimated 1.1 to 1.2 million UPI transactions every day, amounting to around ₹65 crore to ₹70 crore daily.
According to estimates, around 10% of customers make fuel purchases worth more than ₹2,000 in a day. Under the proposed system, dealers could face daily charges of around ₹5.5 lakh to ₹6 lakh if a fee of ₹5 is levied on each such transaction. This could amount to approximately ₹1.65 crore to ₹1.80 crore over 30 days.
Association writes to Centre
Punjab Petrol Dealers Association state president Paramjit Singh Doaba has sought relief from the Union Petroleum Minister, Finance Minister and officials of Indian Oil, Bharat Petroleum and Hindustan Petroleum.
Referring to the Finance Ministry’s gazette notification issued on September 14, the dealers said no additional charges should be imposed on digital payments at petrol pumps.
The dealers argued that their margins on petrol and diesel sales are already limited. At the same time, expenses on staff salaries, electricity, maintenance, security and other operations continue to rise.
They said that imposing an additional charge on every UPI transaction above ₹2,000 would directly affect their earnings and increase the financial burden on petrol pump dealers.
- PTC NEWS
