Union Finance Minister Nirmala Sitharaman on Monday stated that reducing excise duties on petrol and diesel would result in a revenue loss of approximately Rs 1 lakh crore. She emphasized the need to instill confidence among citizens and asserted that “India cannot afford fear mongering.”
Fuel Price Hikes Continue
Her remarks came as fuel prices witnessed another round of increases, marking the fourth hike in ten days. On Monday, petrol prices rose by Rs 2.61 per litre, while diesel became costlier by Rs 2.71 per litre, adding further strain on household budgets and transportation costs.
Sitharaman Criticizes 'Pessimistic Narrative'
Speaking at the 37th anniversary event of the Small Industries Development Bank of India (SIDBI), Sitharaman criticized what she described as a growing “pessimistic narrative” being pushed by naysayers following Prime Minister Narendra Modi’s appeals for altruism. She stressed that the country “cannot afford fearmongering” and underscored the importance of building confidence through both words and actions.
Focus on 'Three Fs'
As the Middle East crisis approaches the three-month mark, the Finance Minister urged a focus on the “three Fs”: fuel, fertilizer, and foreign exchange. She asserted that India’s economy remains resilient despite global uncertainties. Sitharaman also highlighted rising global pressures, noting that fertilizer prices have reached “unimaginable” levels, while elevated gold prices are creating “some challenges” on the external front.
She further added that the government’s approach aligns with Prime Minister Modi’s broader strategy for managing external shocks. At the same time, she dismissed exaggerated negativity, stating that some “naysayers” were portraying the situation as if everything is “crumbling,” which she stressed is not the case.
“All the good that is being done by the common people themselves, that is forgotten. And a pessimistic, cynical narrative is generated, which is just not right,” she said. “We should appreciate that the challenges are more externally driven. We must also recognize that India's domestic economic situation remains positive and resilient even today,” she added. “India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she said, adding that a section of people is attempting to decry “our own achievements amid the challenges posed by the West Asia crisis.”
Finance Minister Highlights MSME Concerns
Minister Sitharaman also raised concerns over Rs 8.1 lakh crore locked in delayed payments to micro, small, and medium enterprises (MSMEs), stating that it is affecting working capital and growth. She urged public sector undertakings to ensure payments are made within the 45-day timeline for MSMEs.
Ahead of the recent price hikes, the government had revised its fuel duty structure, lowering the special additional excise duty on petrol to Rs 3 per litre and removing it entirely on diesel. This move comes amid ongoing disruptions in global oil supply chains due to the conflict in the Middle East, with tensions around the Strait of Hormuz affecting energy flows.
Since the Middle East conflict began on February 28, energy supplies through the crucial Strait of Hormuz have remained disrupted, sending ripples across the globe.
