Lucknow: Petrol pump dealers in the city have opposed govt’s latest move linked to UPI transactions, warning they may shift back to cash payments if the decision is not withdrawn.
Singh said current commissions are around Rs 2 per litre on diesel and Rs 3 per litre on petrol, and claimed the margins are inadequate to meet operating costs. Over a month, he said, this totals roughly 18 litres and costs around Rs 2,000, an amount borne by the fuel station owner. He cited an example of a Rs 10,000 fuel being paid through five transactions of Rs 2,000 each, and warned that repeated credits could potentially lead to scrutiny or even freezing of a dealer’s bank account.
Virendra Pratap Singh, president of the Cooperative Bank Association and Lucknow Petrol Dealers Association, said dealers are keeping a close watch on developments and will meet within the next two to three days to decide their response. If it is not rolled back, we will go back to cash transactions,” Singh said, adding that the association would take steps to protect its members’ businesses. Singh said customers sometimes split a large purchase into multiple smaller transactions to stay within per-transaction limits.
“We are against this move of the govt. Dealers say the sector is already under financial strain and that long-pending demands for a higher commission have not been addressed. Another concern raised by dealers relates to customer payment behaviour on UPI.