OMCs may recoup card charges at motor fuel outlets through price hikes

Decision to spare dealers from MDR charges has had an impact on private retailers

The past fortnight saw uncertainty over who bears the cost of card transactions at fuel retailing outlets for motor vehicles.

With the government directive for banks and oil marketing companies (OMCs) to decide among themselves, analysts do not see the merchant discount rate (MDR) as a great concern for the latter.

Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation expect the charge to be nominal enough to be recovered through price increases in the next few months. Private fuel retailers, Essar and Reliance, would take a bigger hit. Digital transactions at fuel outlets have risen to Rs 480