There will be no extra charge for card transactions at petrol pumps, the government decided today after petrol pump owners threatened to stop accepting cards.

Government on Monday clarified that Oil Marketing Companies will bear the transaction charge, a day after nearly more than two thirds of petrol pumps across the country threatened to stop accepting debit and credit cards over the surcharge. 

"Consumers will not pay extra for digital transactions," Minister of State for Petroleum Dharmendra Pradhan said after a meeting. There would be no burden on retail fuel outlets as well, he added.

After the government stepped in last night, petrol pumps deferred till January 13 their move to stop all credit and debit card transactions.

To promote cash-less transactions, the government had waived the Merchant Discount Rate (MDR) on fuel purchase post demonetisation for consumers. But after the expiry of the 50-day window, the banks have decided to levy MDR on petrol pump owners.