Union Finance Minister Nirmala Sitharaman on Monday stressed the need to focus on three Fs – fuel, fertiliser and forex – amid the West Asia crisis which she said is not merely a geopolitical issue but would affect common people and businesses due to rising energy costs.
Speaking at an event marking the 37th anniversary of Small Industries Development Bank of India in Mumbai, Sitharaman said, “There is a need to focus on the three Fs of fuel, fertiliser and forex.”
She admitted that the rising crude oil and fertiliser prices due to the US-Iran war have become a major concern for the country’s economy.
“The war in West Asia was not merely a diplomatic or geopolitical issue, she said, adding that it would directly affect the common people and businesses through rising fuel costs,” she said.
The finance minister said that the government is set to bear nearly Rs 1 lakh crore revenue loss due to the reduction in excise duty on petrol and diesel.
She noted that the ongoing US-Iran war could have far-reaching consequences, including “higher fuel costs, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders.”
Amid the protests by the Opposition over the rising fuel prices and inflation, Sitharaman also slammed what she called a “pessimistic, cynical narrative”.
“All the good that is being done by the common people themselves, that is forgotten. And a pessimistic, cynical narrative is generated, which is just not right,” she said.
Asserting that the challenges are “more externally driven”, the Finance Minister emphasised that India’s domestic economic situation remains “positive and resilient.”
“India cannot afford fearmongering. We need to give confidence to the people with our words and with our actions,” she added.
Her remarks came amid repeated hikes in fuel prices by state-run oil marketing companies. In the last 10 days, petrol prices have been increased by Rs 7.35 per litre and diesel prices by Rs 7.53 per litre.