Union Finance Minister Nirmala Sitharaman said on Monday that the ongoing crisis in West Asia is not merely a diplomatic issue but will directly impact fuel prices and everyday life for citizens.
Speaking at the 27th foundation day of Sidbi, she said the government is sacrificing Rs 1 lakh crore in revenue by cutting excise duties on petrol and diesel to protect consumers and businesses. She warned that the conflict has led to higher fuel costs, delayed cargo, costlier shipping, input shortages, and pressure on working capital and exports.
Petrol prices rose by Rs 2.61 per litre and diesel by Rs 2.71, marking the fourth increase in 11 days. Since May 15, cumulative hikes have reached nearly Rs 7.50 per litre. The Finance Minister said the prolonged crisis, now over 80 days, has made it difficult for small businesses to plan ahead and has created uncertainty for global trade.
She outlined the government’s measures to safeguard citizens and enterprises, including excise duty cuts, simplified customs procedures, support for MSMEs, and protection for exporters. She said customs reforms have helped businesses reroute or store stranded cargo and maintain supply chain stability.
Sitharaman emphasised that the government remains focused on maintaining economic balance while ensuring that exporters and small industries withstand the impact of rising global crude prices.
