Union Finance Minister Nirmala Sitharaman on Monday cautioned against spreading fear amid rising fuel prices, stating that reducing excise duties on petrol and diesel would result in a revenue loss of approximately ₹1 lakh crore. Her remarks followed the latest fuel price hike, the fourth in just 10 days, with petrol prices increasing by ₹2.61 per litre and diesel by ₹2.71 per litre. These repeated increases have intensified pressure on household budgets and transportation costs across the country.
Speaking at the 37th anniversary event of the Small Industries Development Bank of India (SIDBI), Sitharaman criticised what she described as a growing “pessimistic narrative” being promoted by critics in the aftermath of Prime Minister Narendra Modi’s calls for altruism and national unity. She stressed that “India cannot afford fearmongering” and called for building public confidence through both words and actions. The Finance Minister highlighted the need to address global economic pressures while acknowledging domestic resilience.
As the Middle East crisis enters its third month, Sitharaman urged the nation to focus on the “three Fs” — fuel, fertiliser, and forex — to navigate external shocks. She pointed out that global fertiliser prices have surged to “unimaginable” levels, while elevated gold prices are posing challenges on the external front. Despite these pressures, she maintained that India’s domestic economic situation remains positive and resilient. She dismissed exaggerated negativity from critics who she said were portraying the situation as if everything is “crumbling,” calling such narratives baseless and counterproductive.
“All the good that is being done by the common people themselves is being forgotten,” she said. “A pessimistic, cynical narrative is being generated, which is just not right.” She emphasised that the challenges India faces are largely externally driven, particularly due to the ongoing crisis in West Asia, and reiterated that domestic economic conditions continue to show strength.
The Finance Minister also raised concerns over delayed payments to Micro, Small and Medium Enterprises (MSMEs), which have amounted to ₹8.1 lakh crore. She called on public sector undertakings to ensure payments to MSMEs are made within the stipulated 45-day timeline to support working capital and growth in the sector.
Earlier, the government had revised the fuel duty structure, reducing the special additional excise duty on petrol to ₹3 per litre and removing it entirely on diesel. These adjustments come as global oil supply chains remain disrupted due to the conflict in the Middle East, particularly tensions around the Strait of Hormuz, a critical chokepoint for global energy flows. Since the conflict began on February 28, energy supplies through the Strait have been disrupted, sending shockwaves through international markets.
Sitharaman’s comments reflect the government’s stance that while external challenges persist, India’s economic fundamentals remain robust. She urged citizens and stakeholders to focus on constructive efforts and avoid succumbing to fear or negative rhetoric, especially during times of global uncertainty.
