Dharmendra Pradhan, Minister of State for Petroleum and Natural Gas, on Monday said that customers will be exempt from merchant discount rate (MDR) charges on card payments during fuel purchase.

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He said, "MDR charges on card payments for fuel purchase will not be passed on to customers."

Pradhan said that Oil companies and banks discussing who is to bear MDR charges, adding, "Petrol pumps will continue to accept card payments post January 13."

On Sunday, the association had announced it would not accept payments through credit and debit cards from Monday in protest against the additional charge levied on such transactions.

The All India Petroleum Dealers Association (AIPDA) decided to revise its earlier decision after consulting the Petroleum Ministry as banks deferred charging transaction fee up to one% on card payments.

"The AIPDA on Sunday decided to stop accepting payment through credit and debit cards till the decision to levy the additional charges are reversed. 

(With IANS)