CHANDIGARH, Oct 14: Petroleum dealer associations from Northern India have sought a meeting with the Ethics Committee of Oil Marketing Companies (OMCs) to discuss mounting financial pressures on retail fuel outlets, demanding a 100 per cent exemption from Merchant Discount Rate (MDR) charges on UPI payments, revision of dealer margins to seven per cent of billed value and equalisation of VAT rates in Punjab and Haryana with Chandigarh.
The demands were raised during a joint media briefing at Chandigarh Press Club on Wednesday by the Rashtriya Jan Udyog Vayapar Sangathan (RJUVS), Federation of All India Petroleum Traders (FAIPT), Petroleum Pump Dealers Association Punjab (PPDAP) and Petroleum Dealers Welfare Association Haryana (PDWAH).
The briefing was addressed by Monty Sehgal, National Spokesperson of FAIPT; Paramjit Singh Doaba, President of PPDAP; Sanjeev Chaudhary, President of PDWA Haryana; and Gulshan Dang, Haryana State President of RJUVS.
Sehgal strongly objected to the proposed MDR charges on UPI transactions, arguing that petroleum dealers operating on regulated margins could not absorb additional digital payment costs.
Calling the term “discount” a misnomer, he said the proposed levy would add to the financial burden of dealers already struggling with rising operational expenses.
The associations demanded a complete exemption from MDR charges on digital payments at petrol pumps, warning that additional transaction costs could further affect the viability of retail outlets.
Chaudhary said dealer margins, last revised in 2017 and given a limited increase in November 2024, remained inadequate to cover establishment expenses, including staff salaries, electricity bills, interest on investments and compliance costs.
He added that the latest revision had offered little relief to low-volume dealers selling less than 100 kilolitres per month.
Doaba pointed to the expansion in the number of petrol pumps following expansion drives in 2018 and 2023, saying that increased competition had reduced average sales throughput. He claimed that national average monthly sales had fallen from around 170 kilolitres to 130–140 kilolitres, while several outlets in Punjab and Haryana recorded sales below 100 kilolitres.
The associations urged the Centre and OMCs to introduce a dealer margin of seven per cent of billed value, with priority for low-volume outlets, preferably before Diwali.
The associations also urged the Punjab and Haryana governments to address alleged fuel smuggling from Chandigarh into adjoining border districts, attributing the problem to differences in VAT rates.
They called for equalisation of fuel VAT rates with Chandigarh, arguing that the disparity was affecting dealer competitiveness and causing potential revenue losses to the state exchequers.
The leaders also expressed grief over the reported killing of a Sales Officer who was performing official duties related to sealing a petrol pump. They condemned the incident and called for a thorough investigation into the circumstances and systemic issues surrounding the tragedy.
The associations said urgent intervention by the government and OMCs was necessary to address dealer grievances, protect the viability of retail outlets and ensure uninterrupted services to consumers.