‘No lockdown, no shortage’: Centre fires back at rumour mill as West Asia crisis stokes panic at home

The Centre on Friday firmly rejected speculation about a possible lockdown, with Union Finance Minister Nirmala Sitharaman assuring citizens that no such move is being considered even as global fuel concerns grow.

The clarification comes at a time of rising anxiety over oil supplies due to tensions in West Asia. The government also reduced excise duty on petrol and diesel, trying to ease the burden on consumers as global crude prices rise and to keep fuel supply steady.

Advertisement

Sitharaman dismissed claims of an impending lockdown as “baseless”, warning that such statements from political quarters could create unnecessary panic. “I want to reassure people that there shall not be any lockdown. I am surprised that some leaders are saying there will be a lockdown and there will be shortages of fuel. These are baseless. Such remarks coming from those in political domains are worrisome. There will be no lockdown such as we saw during Covid. I want to reassure people that there shall be no such lockdown as we saw in Covid,” she said.

Echoing this, Union Petroleum Minister Hardeep Singh Puri called the rumours “completely false” and said attempts to spread fear were “irresponsible and harmful.” In a post on X, he urged people to remain calm, adding that the government is closely monitoring the situation.

“Rumours of a lockdown in India are completely false. Let me state this clearly: there is no such proposal under consideration by the Government of India. In such times, it is important that we remain calm, responsible, and united. Attempts to spread rumours and create panic in such a situation are irresponsible and harmful,” Puri said in a post on X.

Why the government cut fuel duties

The Centre’s decision to reduce excise duty is linked directly to the global oil situation. According to Sitharaman, the move is meant to protect consumers from rising international crude prices triggered by the ongoing conflict in West Asia.

She said the government wants to prevent any increase in retail fuel prices despite higher import costs. To achieve this, it will support oil marketing companies so they can continue purchasing fuel at elevated global rates without passing the burden on to the public.

The Finance Minister also stressed that the decision would ensure there is no disruption in supply. Oil companies will continue to import and distribute fuel so that petrol, diesel and LPG remain available without shortages.

Puri added that the government had two choices amid soaring global prices — either pass on the increase to consumers or absorb the impact. He said the Centre chose to take a hit on its finances to protect citizens.

He noted that international crude prices have jumped sharply in the past month, rising from around USD 70 per barrel to about USD 122. This has led to steep fuel price increases globally, with many regions seeing hikes between 20% and 50%.

What changes for consumers

The government has reduced excise duty on petrol to ₹3 per litre and eliminated it for diesel. At the same time, it has imposed a windfall tax of ₹21.5 per litre on diesel exports.

Officials said these steps are designed to balance domestic supply while discouraging excessive exports during a period of global shortage.

The decision comes against the backdrop of the US-Israel conflict with Iran and the blockade of the Strait of Hormuz, a key route through which a significant share of the world’s oil supply passes. Before the crisis, India sourced around 12–15% of its oil through this route.