4 min readNew DelhiMar 28, 2026 05:09 AM IST
The government is taking the burden, and making sure that volatility outside does not hit the ordinary citizen, Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Friday on the government’s decision to cut excise duty on petrol anddiesel.
Responding to a discussion on the Finance Bill 2026, which the Upper House returned with a voice vote, thus completing the budgetary exercise, Sitharaman said: “International crude oil prices have surged from $70 to $122 per barrel within just one month, driven by this West Asia conflict, particularly because of disruptions in the Strait of Hormuz … petrol and diesel prices have gone up for consumers all over the world by 30-50% in Southeast Asian nations, 30% in North America…”
She added: “… Prime Minister’s guidance is that there shouldn’t be a burden on the citizens … we are managing carefully. This morning, the announcement was made … cutting petrol excise duty from Rs 13 to 3 per litre, a reduction of Rs 10. Diesel duty was removed entirely, dropping from Rs 10 to 0. No waiting period, no phased rollout — immediate effect from today. The result — petrol and diesel retail prices inIndia remain unchanged,” she said.
Referring to rumours of a lockdown, she said: “Some politicians are spreading rumours that there will be a lockdown. There is no possibility of a lockdown in India. Politicians should stop spreading these rumours … baseless rumour-mongering … to spread a certain perception among people.”
On how the government will ensure a fiscal deficit of 4.3% of GDP in view of the reduction in excise duties announced on Friday, Sitharaman said “we shall be on our toes”.
“Union excise duty is one of the multiple sources of revenue to the government and contributes under 10% of tax revenue … Mobilisation of additional resources, prioritising of growth-induced expenditure … greater transparency in fiscal operations have been significantly the hallmark of the government … following the same pattern, we’ll be able to keep the government’s fiscal stance carefully managed,” she said, adding that there will also be “efforts to have greater mobilisation through non-tax revenues”.
During the discussion on the Finance Bill, Opposition members raised concerns about the conflict in West Asia and its impact on India.
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Trinamool Congress MP Saket Gokhale said the government’s move to cut excise duty on petrol and diesel was made keeping in mind the upcoming Assembly elections. “Ministers of this government … have been saying that the Modi government is taking a hit to its own revenues instead of increasing petrol and diesel prices. This is happening because four major states are going to polls,” he said, adding, “Will the Finance Minister give a commitment on the floor of this House that after 29th of April, when the voting is completed, the government will not increase the prices even by one rupee?”
Asking what steps have been taken to address the LPG scarcity, DMK member P Wilson said: “India is, today, one of the largest consumers of LPG in the world … but our national storage capacity barely covers 3 to 4 weeks of consumption and strategic reserves are extremely limited … this is largely because the government has failed to diversify energy sources efficiently. The government has also been slow in building the necessary natural gas infrastructure such as pipelines and terminals which has hindered the goal of a gas-based economy.”
CPIM member V Sivadasan said, “Many Indians working in West Asia are facing distress due to US-Israel aggression. Indian workers in West Asia are worried about their safety, their jobs and their future … We are the largest group of citizens in the world, but our government is silent.”
“People are cancelling weddings, functions, gatherings because they are unable to get LPG cylinders … people are forced to buy gas cylinders in the black market at very high prices. The government is not addressing the issue … it shows the failure in supply and monitoring,” he added.
