Fuel Pumps Already Refusing To Accept UPI Payments!
Written By: Ajeesh Kuttan Published: September 17, 2026 at 08:35 PM Updated: September 17, 2026 at 08:35 PM
Unified Payments Interface (UPI) has been a hot topic online this week, following the government's announcement of a fee for merchants processing payments above Rs 2,000. Many shop owners and businessmen have expressed their concerns, and we've seen related agitations. A video circulating online claims that petrol pumps in Delhi have stopped accepting UPI payments and are promoting cash transactions only.
The video, shared by the Aam Aadmi Party on Instagram, shows a handwritten note on a CNG fuel dispenser: "No UPI, No Card, Only Cash." The date on the note suggests it's a recent occurrence.
Fuel pump dealers had already voiced dissatisfaction with the introduction of the new MDR (Merchant Discount Rate) for UPI payments, set to take effect next month. They fear the Rs 5 flat MDR will negatively impact their thin margins and make transactions unviable.
Petrol dealer associations have requested the government to exempt fuel stations from the new charge. However, reports from various parts of the country indicate that petrol pumps are planning to refuse UPI payments as early as October 15th, should the request be rejected.
Currently, over 60 percent of fuel sales are made through digital payments, primarily via card or UPI. Charging a flat Rs 5 per transaction above Rs 2,000 will significantly affect petrol pump operators' revenue. The Petrol Dealers Association in Mumbai has already written to the RBI and the Finance Minister, demanding the rollback of the MDR.
Dealers from Delhi NCR, Punjab, Uttar Pradesh, Mumbai, Karnataka, and Rajasthan have expressed their burden with this move. If the government doesn't reverse its decision, it could indirectly harm the general public, who often rely on UPI and cards for payments, forcing them to visit ATMs and incur additional charges.
The handwritten "No UPI, No Card, Only Cash" note from the video could become a common sight at petrol pumps nationwide if the government fails to address these concerns.