Finance Minister Justifies Fuel Price Increase Amid Global Crisis

Fuel Price Hike Explained

On Monday, Nirmala Sitharaman, the Union Finance Minister, addressed the recent increase in fuel prices, explaining that it could have been significantly higher—by Rs 10—months ago. She noted that the government had shielded consumers from price hikes for 76 days during the ongoing conflict before implementing the first increase. In her remarks to the media, she stated, "For approximately 76 days, our goal was to prevent any extra financial burden on the public. This year, we have provided relief exceeding Rs 1 lakh crore annually through cuts in excise duty."

Sitharaman emphasized that without these reductions, prices would have surged by Rs 10 per litre at that time. She attributed the current price increases to Oil Marketing Companies, which are responsible for procurement and sales. Amid the escalating crisis, she highlighted the importance of monitoring the "three Fs": fuel, fertiliser, and forex, particularly in light of the Iran war's impact on global markets and domestic costs.

She also mentioned Prime Minister Narendra Modi's recent call for conserving foreign exchange reserves, which has become increasingly crucial. Regarding fertiliser and gold prices, she pointed out that fertiliser costs have reached unprecedented levels, while rising gold prices pose challenges for India on the international front. On the topic of the depreciating Rupee, the Finance Minister remarked, "We have received numerous inputs and suggestions concerning the rupee and investments. We are currently reviewing all feedback, which includes voluntary public input and data collected from various departments."