Union Finance Minister Nirmala Sitharaman on Monday cautioned that reducing excise duties on petrol and diesel would result in a revenue loss of approximately ₹1 lakh crore, as fresh price hikes pushed fuel costs higher for the fourth time in 10 days. Petrol prices increased by ₹2.61 per litre and diesel by ₹2.71 per litre on Monday, adding to the financial strain on households and transport operators across the country.
Speaking at the 37th anniversary event of the Small Industries Development Bank of India (SIDBI), Sitharaman emphasised the need to instil confidence among citizens and dismissed what she described as a growing “pessimistic narrative” following Prime Minister Narendra Modi’s appeals for altruism. She stated, “India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions.” The Finance Minister highlighted the resilience of India’s economy amid global uncertainty, urging focus on the “three Fs”: fuel, fertiliser, and forex.
Sitharaman acknowledged rising global pressures, noting that fertiliser prices have reached “unimaginable” levels, while elevated gold prices pose challenges on the external front. She stressed that many of the challenges are externally driven and pointed out that India’s domestic economic situation remains positive and resilient. The minister also criticised a section of people attempting to undermine India’s achievements amid challenges posed by the West Asia crisis.
Addressing concerns related to delayed payments to micro, small and medium enterprises (MSMEs), Sitharaman highlighted that ₹8.1 lakh crore is locked in delayed payments, affecting working capital and growth. She urged public sector undertakings to ensure payments to MSMEs are made within the stipulated 45-day timeline. The government had earlier revised the fuel duty structure, lowering the special additional excise duty on petrol to ₹3 per litre and removing it entirely on diesel, a move taken amid ongoing disruptions in global oil supply chains due to the Middle East conflict.
The conflict in the Middle East, which began on February 28, has disrupted energy supplies through the Strait of Hormuz, sending global ripples. Tensions in the region continue to affect energy flows, contributing to volatility in fuel prices.
Meanwhile, Telangana Transport Minister Ponnam Prabhakar accused the Bharatiya Janata Party (BJP) of “breaking the backbone of common people” through rising petrol and diesel prices, even as the party conducts “deceptive political yatras” in the name of farmers. Prabhakar was reacting to the Telangana BJP’s “Rythu Gosa – BJP Bharosa” yatras, alleging that the Centre is attempting to divert attention from pressing issues faced by farmers and the common man.
The minister highlighted that escalating diesel and petrol prices have sharply increased expenses related to tractors, irrigation motors, and transportation, directly impacting agricultural operations. He said, “The BJP leaders who speak about farmer welfare are remaining silent on the issue of fuel prices that directly affect agricultural operations.”
Prabhakar also accused the Centre of failing to fully procure paddy cultivated by Telangana farmers. He alleged that the Union government was not cooperating in sanctioning boiled rice procurement and granting approvals for levy rice despite repeated requests from the State government. According to the minister, the Centre approved the procurement of only 53.73 lakh metric tonnes of paddy, while the Telangana government had set a target of 75 lakh metric tonnes to protect farmers from distress.
Highlighting the State government’s efforts, Prabhakar said Telangana had established 8,575 paddy procurement centres across the State and was purchasing 8.5 lakh metric tonnes of paddy waiting at procurement centres on a war footing. He added that 21 crore gunny bags had been made available at the field level to avoid inconvenience to farmers. The minister said that the government had so far procured 51 lakh metric tonnes of paddy and deposited ₹8,749 crore towards Minimum Support Price directly into farmers’ bank accounts.
Targeting the BJP over its election promises, Prabhakar said the party had failed to fulfil assurances of doubling farmers’ incomes and providing monthly pensions to farmers above 60 years of age. He also referred to the controversial farm laws, alleging that BJP policies had caused severe hardships to farmers nationwide and claimed that over 700 farmers had lost their lives during the agitation against the laws. Calling the increase in MSP for maize by only ₹10 per quintal “shameful,” he demanded an apology from the Central government to maize farmers.
