Union minister of finance Nirmala Sitharaman on Monday said the ongoing crisis in West Asia is no longer merely a diplomatic or geopolitical issue, warning that the prolonged conflict would directly impact fuel prices, shipping costs, supply chains and household expenses for ordinary citizens.
Her remarks came just hours after petrol and diesel prices were increased for the fourth time in 11 days, taking cumulative fuel price hikes since 15th May to nearly ₹7.50/litre.
Speaking at the 27th foundation day event of Small Industries Development Bank of India (SIDBI), Ms Sitharaman said the government is making efforts to shield consumers and businesses by sacrificing nearly ₹1 lakh crore in revenue through excise duty reductions on petrol and diesel.
"The West Asia crisis is not only a diplomatic or geopolitical issue. For businesses and common people, it can mean higher fuel costs, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders", the finance minister said.
Petrol prices were raised by ₹2.61/litre and diesel by ₹2.71/litre on Monday as State-owned oil marketing companies (OMCs) continued passing on the impact of rising global crude oil prices triggered by tensions in West Asia.
Following the latest revision, petrol prices in Delhi climbed to ₹102.12/litre while diesel prices rose to ₹95.20/litre.
Ms Sitharaman acknowledged that the prolonged conflict, which has now continued for more than 80 days, was creating planning difficulties for small businesses and exporters.
She said the government’s approach remained focused on protecting citizens, supporting micro, small and medium enterprises (MSMEs), safeguarding exporters, maintaining supply chains and preserving overall economic stability.
According to the finance minister, the government has already taken several steps to help exporters and businesses cope with disruptions, including simplifying customs procedures to enable enterprises to reroute, store or trans-ship stranded cargo more efficiently.
She also defended prime minister (PM) Narendra Modi’s recent austerity call and urged people to focus on what she described as the ‘3Fs’ — fuel, fertiliser and forex — amid the uncertain global environment.
Ms Sitharaman said there had been an ‘unimaginable jump’ in global fertiliser prices following the escalation of the West Asia crisis.
"The crisis is borne by external events, and the domestic economy continues to be positive and resilient," she said, while cautioning against fearmongering and pessimistic narratives surrounding the economic situation.
Meanwhile, government officials said India’s petroleum and fertiliser supply position remains stable despite the external pressures.
Sujata Sharma, joint secretary in the ministry of petroleum and natural gas (MoPNG), said India’s imports had been significantly affected because around 40% of crude oil, 90% of LPG and nearly 65% of natural gas imports are linked to the impacted region.
"However, every effort is being made to ensure smooth domestic supply of petroleum products," she said.
According to the petroleum ministry, refinery LPG production has been increased to nearly 50,000TPD (tonnes per day) to maintain uninterrupted domestic supplies.
The ministry also said that around 7.99 lakh piped natural gas (PNG) connections had already been gasified, while infrastructure for another 287,000 connections was ready. More than 827,000 additional customers have registered for PNG connections.
On domestic LPG distribution, officials said around 17.2mn (million) crore LPG cylinders had been delivered over the past four days against bookings of 16.6mn cylinders, with nearly 95% of deliveries completed using authentication codes. LPG distributors also operated on Sunday to ensure an uninterrupted supply.
Separately, the department of fertilisers said India’s fertiliser availability remains comfortable despite the sharp rise in global prices.
Aparna S Sharma, additional secretary in the department, said fertiliser stocks currently stand at 20.01 mnmt (million metric tonnes), equivalent to more than 51% of the country’s annual requirement of 39.05mnmt.
She said total domestic fertiliser production has reached around 95 lakh metric tonnes, while imports of 2.26mnmt have strengthened overall availability.
The government also confirmed adequate supplies for the upcoming kharif season, including 1.35mnmt of diammonium phosphate (DAP) and 900,000MT (metric tonnes) of complex fertilisers such as nitrogen, phosphorus and potassium (NPK).
Officials said raw material availability for fertiliser manufacturing was also being closely monitored to avoid supply disruptions during the peak agricultural demand season.
The developments come amid rising concerns over the broader economic impact of the West Asia crisis, particularly on inflation, transportation costs, logistics expenses and energy security.
Economists and industry experts have warned that continued volatility in global crude oil prices could further increase pressure on India’s import bill, weaken the rupee and push up costs for businesses and consumers alike.
