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Old 13th December 2016, 12:13   #31
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Originally Posted by sdp1975 View Post
0.75% of 150 k comes to around 1K cashback - maybe the 11K was a typo in your post ?

I also believe the discount is a temporary measure. It's a matter of time before it's pulled back.
, sorry got carried away.

However I disagree that this is temporary. I feel it will stay in place for at least 1 year to incentivize consumers to permanently change their cash vs non-cash transaction patterns. Either a discount for cashless transactions OR a 'cash handling' charge for cash users will imprint the message once and for all.
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Old 13th December 2016, 12:28   #32
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

Please correct me if I am wrong:

The discount is from the OMCs and thus Govt of India.

The 2.5% surcharge is levied by the OMCs to offset the transaction charges. Many banks may refund these to the customer.

Thus the latter has to be handled at a different level than the former. At one time dealer margins were so thin (about 50p per litre), that they could not afford to pay the transaction charges. At some point the ease of handling cashless and the safety in having less cash to handle must be offset against the bank/card charges. I understand in the west the OMCs have negotiated special rates with the card companies.
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Old 13th December 2016, 13:09   #33
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

Just read in an article that this discount will only be applicable at PSU bunks, and the cashback would be credited in 3 days (working). While the cashback mechanism is good - saves attendants from the hassles of calculations, this would not be of much use to people who fill at non PSU bunks, Shell for example.
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Old 13th December 2016, 14:23   #34
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Not confirmed, but my thought is they are going to give a discount on the surcharge that is applied when fuel is bought through debit / credit card.
Second approach: The cashback will reflect back in card.
The second approach it is! The cashback will be credited back in 3 days to the payment mode, which was used. Only catch I think is, this offer will be valid at state owned oil companies. I hope private players like shell also should chip in.

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People buying fuel via digital payment modes will get a discount of 0.75% starting Monday midnight.
The discount would be by way of cash-back which will be credited to the buyer’s account in three days from the transaction, said Indian oil Corp, the nation’s largest fuel retailer.
The 0.75% discount on payments made using either credit/debit cards, e-wallets or mobile wallets will translate into a rebate of 49 paisa a litre on petrol and 41 paisa on diesel.

Petrol is currently sold at Rs 66.10 per litre in Delhi while a litre of diesel costs Rs 54.57.
The “discount will be credited to customer’s account by way of cash back within maximum three working days of the transaction,” IOC said in a statement.
Finance minister Arun Jaitley had last week announced a raft of measures including discounts on online payments for insurance policies, rail tickets and highway toll charges as the government looked to promote digital cash post demonetisation.
“As a part of these initiatives, to promote cashless transactions Government of India has announced to incentivise petrol/diesel customers transacting at PSU petrol pumps by way of 0.75% discount when a customer uses debit/credit cards, mobile wallets and prepaid loyalty cards,” the statement said.

Last edited by PraNeel : 13th December 2016 at 14:28.
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Old 14th December 2016, 15:35   #35
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

Is there any information regarding surcharge? My bank usually charges surcharge if I pay via card, will it be waived off as well in addition to 0.75% cashback?
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Old 14th December 2016, 15:54   #36
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Is there any information regarding surcharge? My bank usually charges surcharge if I pay via card, will it be waived off as well in addition to 0.75% cashback?
In most cases, surcharge is credited back (like cashback) at end of the month.
I think its best to check with your bank.
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Old 14th December 2016, 15:57   #37
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Originally Posted by sgiitk View Post
At one time dealer margins were so thin (about 50p per litre), that they could not afford to pay the transaction charges.
I really doubt that, although I have no proof to back it. There are some bunks owned by Lorry Owners Association here in Tamilnadu offer as much as 60p per litre of diesel for members and little less for everyone else. If they have no room to offer discounts, they won't, right?
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Old 14th December 2016, 16:15   #38
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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In most cases, surcharge is credited back (like cashback) at end of the month.
I think its best to check with your bank.
My bank usually charges surcharge to me and doesn't credit back, just wanted to know whether it is waived off along the announcement of 0.75% discount.
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Old 14th December 2016, 19:56   #39
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

Just filled petrol for 400 rupees. Paid using paytm. 3 rupees got credited back immediately.
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Old 14th December 2016, 23:42   #40
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Just filled petrol for 400 rupees. Paid using paytm.
i am pretty scared to use a mobile phone at a bunk. Infact I thought it was discouraged. How are they permitting this?
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Old 15th December 2016, 06:58   #41
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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i am pretty scared to use a mobile phone at a bunk. Infact I thought it was discouraged. How are they permitting this?
No worries, the Paytm barcode is kept far away from the pumping stations. You need to walk or drive over, scan and pay in complete safety.
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Old 15th December 2016, 10:44   #42
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Originally Posted by katchkamalesh View Post

Only people with the third type of card are likely to benefit from the so called discount. They will be paying only 99.25% of the actual cost of fuel.
Illustration. For every Rs. 1000 of fuel, you are charged Rs. 1000 (Rs.7.5 will be reversed). effective price - Rs. 992.5.


2. card (without any surcharge) only then it will be beneficial.
Which is the third type of card you are referring to ? Is it a credit card or debit card? Or are you referring to those fuel credit cards which have 2.5% waiver on fuel surcharge?
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Old 15th December 2016, 10:49   #43
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Originally Posted by jojipg View Post
Just filled petrol for 400 rupees. Paid using paytm. 3 rupees got credited back immediately.
On Tuesday, I too filled up for Rs. 1830.13 at HP COCO bunk and immediately received Rs. 13.73 as cashback. However, till now I haven't received the usual Paytm Cashback that I used to receive earlier. And that amount was upto Rs. 50. So, is it really a gain for me ?

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Originally Posted by itwasntme View Post
No worries, the Paytm barcode is kept far away from the pumping stations. You need to walk or drive over, scan and pay in complete safety.
Not at all bunks. At my neighbourhood HP COCO bunk, the paytm barcode pedestals are kept right between the pumping stations. But I won't have any qualms to burn down the bunk for getting my cashback
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Old 15th December 2016, 15:38   #44
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Originally Posted by bhavik.1991 View Post
Is there any information regarding surcharge? My bank usually charges surcharge if I pay via card, will it be waived off as well in addition to 0.75% cashback?
Nope! It does not seem so.

On Dec 13th, I refilled my car at a HP petrol pump where I visit frequently (but it is not a COCO pump). I paid using my credit card for the first time at this pump just to check this demonetization discount (I had also withdrawn money from an ATM just before going to the pump and kept the cash as backup!).

I was billed for Rs. 1440 at the pump. My credit card statements is now showing Rs. 1481.40 (Rs. 1440 + 2.5% fuel surcharge + 15% service tax on surcharge). Honestly, I am disappointed to shell out this Rs. 41.40 extra for paying through cashless mode!
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Old 15th December 2016, 15:59   #45
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Default Re: 0.75% discount for those who buy petrol and diesel using cards

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Originally Posted by gmhossain View Post
Nope! It does not seem so.

On Dec 13th, I refilled my car at a HP petrol pump where I visit frequently (but it is not a COCO pump). I paid using my credit card for the first time at this pump just to check this demonetization discount (I had also withdrawn money from an ATM just before going to the pump and kept the cash as backup!).

I was billed for Rs. 1440 at the pump. My credit card statements is now showing Rs. 1481.40 (Rs. 1440 + 2.5% fuel surcharge + 15% service tax on surcharge). Honestly, I am disappointed to shell out this Rs. 41.40 extra for paying through cashless mode!
So the conclusion is: Unless the bank provides surcharge waiver, one should stick to cash at fuel bunks.

I think honorable finance minister announced service tax waiver for transactions below 2000 INR on 8th Dec. Don't know why it was charged to you. Can anyone please explain?

Also, I have seen average Joe opting for cashless transactions at fuel bunks for the first time, thanks to the 'not so transparent' marketing of 0.75% cashback by the government.
Most of them have no idea about the fuel surcharge and end up paying more. To make things worse, most of the private banks lists the surcharge as separate transaction and while the customer receives a text for actual deduction, (s)he never receives the same for surcharge deduction. To add to that, surcharge deduction appears in the statement at the end of the month/bill cycle. These factors make it very likely that average Joe will not come to know about fuel surcharge and might continue using cards at bunks.

On a different note, I renewed health insurance policies (oriental insurance), amount summing up to 32000 INR yesterday. No cashback or discount as of now,despite the announcement of 8% discount by the honorable finance minister.

Last edited by bhavik.1991 : 15th December 2016 at 16:01.
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