Today's Paper

No extra charge for card use at petrol pumps

Oil Minister Dharmendra Pradhan told reporters on Monday that neither the customers nor the dealers will bear the additional charge on digital transactions made at petrol pumps.

This statement comes a day after petrol pump associations threatened to stop accepting card transactions due to the extra charge levied on them by banks.

The oil marketing companies will now meet the banks to decide on who will bear the brunt of these additional charges.

“Now petrol pumps will accept card payment at least until the meeting happens and they decide who will take on the expense of the additional charge,” an official at Hindustan Petroleum Corporation told The Hindu.

He said the meeting would take place “in the next few days or so.”

‘A big burden’

“It is quite a big burden for the dealers,” K. Ravichandran, Senior Vice-President and Co-Head, Corporate Sector Rating at ICRA said.

At the moment the charges are one per cent on all credit card transactions and 0.25-1 per cent on all debit card transactions.

The Central government had in November instructed the banks to waive all such charges till December 31 to ease the adoption of electronic payment mechanisms for fulfilling its cashless economy objectives.

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