Negotiations underway, no one per cent surcharge on customers or petrol pump owners: Dharmendra Pradhan

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.

By: ANI | New Delhi | Updated: January 9, 2017 6:50 pm
petrol pumps, petrol pumps defer decision, petrol pumps, 1 per cent transaction charge, banks-petrol pumps, HDFC, ICICI, petrol, bank, card payment, debit card payment, demonetisation, fuel, surcharge, 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. (Source: Express Archive)

With petrol pumps across the nation deciding to postpone till January 13 their protest against the banks’ decision to levy extra charge on card transactions, the Centre has assured that negotiations are underway between banks and oil marketing companies, while assuring that surcharge will not be imposed on both customers and petrol pump owners.

“Neither the customers nor petrol pumps will bear additional charges on digital transactions; the issue will be resolved,” Dharmendra Pradhan said.

“Let me make it clear that customers will not be levied with any surcharge. Petrol Pumps were worried that the 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,” Pradhan added.

WATCH VIDEO | Government Assures No 1% Surcharge On Customers Or Petrol Pump Owners

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 per cent 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 per cent 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 said.

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 cash-less 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.

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  1. K
    Krishna
    Jan 9, 2017 at 3:11 pm
    We want to use the paper money - we do not want to use debit card. WE want freedom to chose - although it will be best for the nation if we went digital route for an extra fee
    Reply
    1. H
      Haradhan Mandal
      Jan 9, 2017 at 9:45 am
      I don't know who the ministers is trying to fool. 1. Customer does not pay, 2. dealer does not pay. So far it is understood. 3. Banks do not pay - quite obvious where is the incentive do to some business here (making little money out of buying and selling petrol by offering some banking service between the two parties ). 4. Who pays then - OIL MARKETING companies. lt;br/gt;OIL marketing companies will increase the petrol price!?!?!?! Who pays? no one.
      Reply
      1. A
        Aditya
        Jan 9, 2017 at 1:23 pm
        Good thinking. Unless banks move over to go to Rupay enm they will need to bear the charges if the govt insists that the MDR cannot be ped on. this is a good motivation to move out of VISA and MASTER card network. This actions will force banks to move to Rupay system
        Reply
        1. A
          arc
          Jan 9, 2017 at 11:55 am
          Modi's and his govt have got their heads buried deep in their rectal channel. Bhakts follow the leaders. And surprise they are called blind Bhakts.
          Reply
          1. C
            chitta
            Jan 9, 2017 at 4:40 pm
            But ur pathetic
            Reply
            1. C
              chitta
              Jan 9, 2017 at 4:42 pm
              Get lost antinational mulla
              Reply
              1. G
                George Cv
                Jan 9, 2017 at 5:03 am
                feku has taught all his ministers THE FINE ART OF LYING !
                Reply
                1. D
                  Darkhorse
                  Jan 9, 2017 at 6:20 am
                  Its finally going to be squeezed out from the customer pockets.
                  Reply
                  1. A
                    A. M.
                    Jan 9, 2017 at 3:12 pm
                    Fake name to propagate govt decisions ??lt;br/gt;Typical sanghi chaddi in disguise
                    Reply
                    1. G
                      Gagan Kumar
                      Jan 10, 2017 at 12:33 am
                      If there is no incentive or motivation to the honest citizens supporting demonetisation and move to porise cashless transaction, then why should they go cashless. The surcharge must end in all transactions including for oil. If you penalise people rather than incentivise them for using less cash, the same set of people would curse the move to go cashless. There are reports that people have to pay more through cards for same set of services such as cinema tickets etc. The decision to demonetise Rs.500 and 1000 notes was political. The move to go cashless is also political, so it is the responsibility of the Modi government to intervene and provide incentives to promote cashless transactions and in no case one should be compelled to pay more using any mode of cashless payment.
                      Reply
                      1. I
                        I M
                        Jan 9, 2017 at 9:14 am
                        The transaction charges for online payment for LPG REFILL is Rs.7/- per transaction and discount / incentive for making online payment for LPG REFILL is Rs.5/-; THUS TRANSACTION CHARGES NEGATES INCENTIVE AND CONSUMER PAYS Rs.2/- more. The petroleum ministry should also consider to waive transaction charges as they have made for purchase of petrol and diesel for making online payment at the time of booking of LPG GAS REFILL. LPG gas is used by every household irrespective of poor and rich... waiving charges will help/promote for going cashless truly.
                        Reply
                        1. S
                          Sankaran Krishnan
                          Jan 10, 2017 at 3:50 am
                          At the first instance who had allowed the Bank to charge the Tax from the consumers for using Debit or Credit cards and after the expose they re reverting the charges shows the brain drain of the Officials at the Banks and that of the Govts. Already the Cards are cheating the customers and it is a pity most of us are not looking the charges and instead pay blindly and that is the reality and even the so called Literates' falls prey to it without looking into the charges that are levied by the cards and by the banks.
                          Reply
                          1. A
                            AKB
                            Jan 9, 2017 at 5:04 am
                            Till todate HDFC was charging 1 percent, Ministry was quiet, as the Bank and the government is hand in gloves to fleece the public. Today the ministry woke up and no chgs wlll be applied. We have a govt which helps rich to fleece the people of the country.
                            Reply
                            1. L
                              Leena Kapoor
                              Jan 9, 2017 at 4:33 am
                              DPDA is either not aware or is not telling the truth. Even before demonetization there was a surcharge on debit card transactions at petrol pumps. Bank account statements record these charges unfailingly.
                              Reply
                              1. M
                                mahesh
                                Jan 9, 2017 at 8:28 am
                                Good, Atleast people are trying to solve the problems, instead of just whining.
                                Reply
                                1. M
                                  mak
                                  Jan 9, 2017 at 6:01 am
                                  Nothing favourable happens in favour of consumers. Bank and Petrol Companies will negotiate, surcharge will not be charged, however, petrol prices will be hiked on some pretext.. that's negotiations. Govt. involvement will be set aside. simple hahhah
                                  Reply
                                  1. M
                                    master
                                    Jan 9, 2017 at 7:03 am
                                    This govt is clueless.
                                    Reply
                                    1. M
                                      Mohammed Yunus
                                      Jan 9, 2017 at 9:36 am
                                      From petrol station owners to end customers, everyone wants everything free.
                                      Reply
                                      1. M
                                        Mohammed Yunus
                                        Jan 9, 2017 at 2:14 pm
                                        Phokatiyas is the correct ideny of us Indians. We want better roads, infrastructure but don't want to pay tax and cess to the nation. Indians are the best in twisting fiscal facts and with an acute connivance to avoid paying anything.
                                        Reply
                                        1. G
                                          gotu
                                          Jan 10, 2017 at 12:52 am
                                          You call it by any name, MDR, Surcharge, Cess..most of the customers are paying it still, even after Nov. 8. Take a look on the terms and conditions of the card issuing bank. Most of the cards charge 2.25% or Rs. 10 whichever is more as petrol surcharge. Some banks offer refund of surcharge for transactions between Rs. 400 and Rs.4000 using card. That means, if you are filling for your two wheeler (most people fill for 100 or 200). SBI Debit is still tricky. They charge 0.75% for transactions between 200 and 2000, if swiped in a machine supplied by SBI. As everyone knows, customers do not have option to select a particular machine at pumps.lt;br/gt;lt;br/gt;Whatever be the case, one thing is sure. There is no free lunch. Banks need fees for their service. It is business. Neither oil companies nor dealers will absorb it, because it will reduce their profit. Ultimately consumers will be paying for going digital. lt;br/gt;lt;br/gt;Smart oil companies in connivance with dealers may adopt another strategy. They will increase the price of petrol /diesel by 2.25% flat irrespective of cash or card. Now they may get more money if cash es paid. A double edged sword.
                                          Reply
                                          1. P
                                            P C
                                            Jan 9, 2017 at 6:07 am
                                            If govt is really serious about promoting digital economy and thus curb black money then it must ensure that there is no charge in any transaction done through digital mode. Otherwise Govt's claim would prove dishonest.
                                            Reply
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