Petroleum Minister Dharmendra Pradhan on Monday said all petrol pumps would continue to accept card payments post January 13.
He said, "Merchant Discount Rate (MDR) charges on card payments for fuel purchase will not be passed on to customers."
Oil companies and banks were discussing who will bear the MDR charges, he said.
On Sunday, hours after deciding to refuse card payments at fuel outlets from Monday to protest against some banks levying the MDR for purchases, petroleum dealers deferred their decision till January 13.
They argued that the levy of 1 per cent and between 0.25 and 1 per cent on credit/debit card transactions was hitting their profits.
"We have received an official communication from oil marketing companies that the transaction charges have been deferred till January 13. Hence, we have put off the stir," said Ajay Bansal, president of the All India Petroleum Dealers Association.
To promote cashless transactions, the government had waived MDR on fuel purchase for consumers. But after the expiry of the 50-day window, banks have decided to levy MDR on petrol pump owners.
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