UPI Payments Banned at Petrol Pumps – If you’re someone who swipes a card or scans a UPI code every time you refuel your vehicle, here’s some big news that might disrupt your routine. From today, May 10, 2025, petrol pump owners in several parts of India have decided to stop accepting UPI and card payments. This move, though surprising for many, comes in response to a rising wave of cyber fraud incidents that have been affecting fuel dealers across the country.
Why the Sudden Ban on UPI and Card Payments?
The tension between India and Pakistan has reportedly given cybercriminals an opening to increase their activities. With more digital transactions happening daily, scammers have found ways to exploit vulnerabilities in payment systems. Petrol pump owners, being frequent recipients of digital payments, have become easy and recurring targets. The result? Many of them are losing lakhs of rupees due to failed transactions, unauthorized access, or fraudulent reversals.
Because of this growing risk, petroleum dealers and fuel station owners across various cities have decided to take precautionary measures. As a result, starting today, many petrol pumps are refusing digital payments altogether. This includes UPI, debit and credit card swipes, and even mobile wallet transactions.
What’s Happening in Nagpur?
Nagpur has become one of the first cities to officially implement this ban. According to reports, petrol pump owners in the city, under the Vidarbha Petroleum Dealers Association, have faced heavy financial losses recently due to digital payment fraud. They say that small transaction errors or stuck payments were common earlier, but when these small losses started accumulating into bigger amounts, it became too much to ignore.
So, to protect themselves and avoid future scams, the pump owners have taken the collective decision to go back to cash-only transactions—at least for now.
A Setback for the Digital India Movement?
This sudden shift back to cash is definitely a step backward for everyday consumers who are used to the convenience of digital payments. Today, more than 60% of fuel transactions in India are done through UPI or cards. For regular commuters, especially those who no longer carry cash, this move could create some serious inconvenience.
For example, cab drivers, delivery personnel, and people traveling long distances often rely on quick UPI payments to refuel on the go. Without prior warning or national-level coordination, this local decision could result in long queues, heated arguments, and a whole lot of frustration at the pump.
Has This Happened Before?
Yes, in fact, this isn’t the first time digital payments have been paused at petrol stations in Nagpur. There have been multiple cases in the past where fuel dealers suffered losses due to fraudulent transactions. While they initially overlooked occasional glitches, repeated and large-scale fraud has forced them to draw the line.
Many pump owners say that when UPI payments used to fail or get stuck for small amounts, they would simply absorb the loss or wait for the bank to resolve it. But recently, as these amounts grew significantly, the financial pressure became unbearable. That’s why this time, they’ve decided not to take any chances and have suspended all kinds of digital payments.
What Should You Do Now?
If you’re heading out to refuel your vehicle, especially in cities like Nagpur, make sure you carry enough cash with you. Until there’s a resolution or a more secure system is put in place, it’s better to be prepared than get stuck in a tricky situation. Also, it’s worth checking with your local petrol pump before assuming they’ll accept UPI or cards.
There’s no word yet on how long this ban will last or whether other cities will follow Nagpur’s lead. But considering the growing concern among fuel dealers, we might see more areas taking similar steps if the fraud situation isn’t brought under control soon.
While the intention behind going digital was to make life easier, it’s clear that the system still has some gaps that need fixing. Cybersecurity is becoming more important than ever, especially when dealing with high-volume transactions like fuel sales. Hopefully, with better safety measures and stricter regulations, digital payments can be resumed without putting businesses at risk.
Disclaimer
This article is based on publicly available reports and may reflect localized decisions that are not applicable nationwide. The situation is evolving, and payment options may vary by region. Please confirm with local petrol pump operators before planning your transactions.
