New Delhi: Union Finance Minister Nirmala Sitharaman has dismissed reports suggesting that India could impose a lockdown amid looming fuel shortages, calling such claims "baseless" and politically motivated.
"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," Sitharaman said.
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri echoed her remarks, calling lockdown rumours "irresponsible and harmful." Posting on X, Puri said, "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."
Why was the excise duty cut?
The Finance Minister highlighted that the government's main goal behind reducing excise duties on petrol and diesel is to protect consumers from rising crude oil prices amid the ongoing West Asia conflict.
"Whenever such a crisis comes in the world and its impact falls on India, before this whether it was COVID or now, the way the Honourable Prime Minister immediately responds to it is so that the burden doesn't fall on the public and the public doesn't face any difficulty or shortage of petrol, diesel, and LPG. For this reason, now, because prices are rising in the international market of crude oil, and because of that, petrol, diesel, and ATF (Aviation Turbine Fuel), the Honourable Prime Minister wanted the consumer price not to increase," Sitharaman said.
She added that the excise duty cuts also ensure OMCs continue importing and supplying fuel despite the surge in global prices, preventing shortages.
On Friday, the government reduced excise duties on petrol to Rs 3 per litre (from Rs 13) and on diesel to zero (from Rs 10). Additionally, a windfall tax on diesel exports has been set at Rs 21.5 per litre.
The reduction comes amid a global energy crisis following the US-Israel strikes on Iran and Tehran's blockade of the Strait of Hormuz, a key shipping route for 20-25 million barrels of oil and gas daily. India sources 12-15% of its crude imports through this route, making it vulnerable to disruptions.
"Due to this decision today, there will be no shortage in supply, no shortage in availability, and the public will get diesel, petrol, and crude," Sitharaman said.