No Lockdown Imminent: Finance Minister Addresses Concerns Amid Rising Oil Prices

Finance Minister's Assurance on Lockdown

New Delhi, March 28: Finance Minister Nirmala Sitharaman has assured that a nationwide lockdown is not on the horizon. Speaking in the Rajya Sabha, she mentioned the government's plans to generate additional resources to offset the revenue loss from the recent excise duty reductions on diesel and petrol.

She emphasized the government's commitment to maintaining a stable fiscal environment.

Addressing concerns about potential lockdowns due to energy supply issues stemming from the West Asia crisis, the Minister urged politicians to avoid spreading rumors that could incite public fear.

With the ongoing conflict in West Asia, global crude oil prices have escalated from USD 70 to USD 122 per barrel, posing significant challenges for India, which relies on imports for over 80% of its fuel needs.

In a press briefing earlier, the government confirmed that India has sufficient stocks of petrol, diesel, and LPG to last at least two months under normal delivery conditions, further dismissing the possibility of a lockdown.

During discussions on the Finance Bill for 2026, Sitharaman noted that Brent crude prices have remained above USD 100 since March 13, leading to increased fuel prices globally. In Southeast Asia, prices have surged by 30 to 50%, while North America saw a 30% rise, Europe 20%, and Africa 50%.

Despite these global trends, she stated that fuel prices in India have not changed. The Prime Minister has instructed Ministers to ensure that citizens do not face additional financial burdens.

“We are acting accordingly,” she remarked, highlighting the government's recent decision to cut excise duties on petrol and diesel by Rs 10 each.

“As a result, retail prices for petrol and diesel in India have remained stable. The government is absorbing the costs, ensuring that oil marketing companies maintain supply without disruption, so that the public does not suffer,” Sitharaman added.

Regarding the fiscal deficit implications of the excise duty cuts, she stated that the Modi administration has focused on mobilizing additional resources, prioritizing growth-oriented spending, and enhancing transparency in fiscal management.

“We will persist in our efforts to increase non-tax revenue and will remain vigilant in managing the country's fiscal health,” she concluded, reiterating that unlike Pakistan and Bangladesh, India is not facing any lockdown measures.