Finance Minister Nirmala Sitharaman on Monday said the government’s revenue is expected to take a hit of Rs 1 trillion in FY27 due to a reduction in excise duties on fuel.
FM Sitharaman also urged the country to focus on fuel, fertiliser and foreign exchange. She also underlined Prime Minister Narendra Modi’s call to conserve foreign exchange as “very important” amid the Gulf crisis.
FM Sitharaman flags pressure on fuel, fertiliser and forex
FM Sitharaman’s statement came after PM Modi earlier this month urged citizens to conserve fuel and foreign exchange, avoid gold purchases, and adopt other austerity measures to better manage the energy shock and economic headwinds.
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“Prime Minister giving a call to conserve foreign exchange, as far as possible, is very important,” Sitharaman said, adding that the stress on the 3Fs — fuel, fertiliser and foreign exchange — should be viewed in this context.
Fuel prices rise amid surging crude
India has been reeling under the impact of rising crude prices and supply disruptions following the closure of the Strait of Hormuz due to the US-Israel war on Iran.
Brent crude is currently near $98.60. However, the crude was hovering beyond $100 a barrel in the beginning of Iran-US war in late February. crude also crossed $120 mark once.
ALSO READFuel prices rise for fourth time: Petrol hiked by Rs 2.61/litre, diesel by Rs 2.71
High prices of crude oil, fertilisers and gold are creating challenges on the external front, Sitharaman added while speaking at an event in Mumbai.
Indian oil marketing companies have raised petrol and diesel prices for the fourth time in 10 days. The price hike began on May 15 increasing by around Rs 3 per litre after this the prices of Petrol and Diesel increased by nearly 90 paise on May 20, and about 87–91 paise on May 23. The latest hike was on Monday, May 25 by Rs 2.61 per litre and diesel by Rs 2.71 per litre.
TOPICSCrude pricesforexfuel pricesNirmala Sitharamanpm narendra modi + 0 MoreThis article was first uploaded on May twenty-five, twenty twenty-six, at thirty-eight minutes past one in the afternoon.