Prateek Tanmay
3 min readUpdated: May 25, 2026 04:37 PM IST
Union Finance Minister Nirmala Sitharaman Monday called for increased focus on 3Fs — fuel, fertiliser and forex — amid the West Asia crisis, emphasising that the domestic economy continues to be resilient.
Speaking at the 37th foundation day event of SIDBI in Mumbai, Sitharaman said the conflict could lead to “higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders”. 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, reported news agency PTI.
The Finance Minister hit out at “naysayers” for creating a cynical and pessimistic narrative after PM Narendra Modi’s appeals on austerity, pointing out that India cannot afford fearmongering and that giving the confidence to people is necessary.
Stating that India’s policy response has been calibrated to preserve domestic growth, Sitharaman said the cut in diesel and petrol excise duties will lead to a revenue impact of Rs 1 lakh crore.
Her remarks came hours after petrol and diesel prices were raised for the fourth time in 11 days. Petrol prices were increased by Rs 2.61 per litre and diesel by Rs 2.71 per litre Monday, taking the cumulative hike since May 15 to nearly Rs 7.50 per litre amid soaring global crude oil prices triggered by tensions in West Asia.
Sitharaman said the government was absorbing a major financial burden to cushion consumers from the full impact of rising oil prices. “The government is sacrificing Rs 1 lakh crore of revenue by cutting excise duties on diesel and petrol,” she said.
#WATCH | Mumbai | Union Finance Minister Nirmala Sitharaman says, “The government is estimated to take a revenue impact of over Rs one lakh crore in 2026 after the central excise duty cut on petrol & diesel. To shield citizens from a steep rise in global crude prices, the central… pic.twitter.com/tvytC8YpAe
— ANI (@ANI) May 25, 2026
Acknowledging the strain on smaller enterprises, the Finance Minister said the more than 80-day-long conflict had made future planning difficult for MSMEs and exporters. She added that the government’s focus remained on protecting citizens, supporting small businesses, safeguarding exporters and maintaining economic stability despite global uncertainty.
#WATCH | Mumbai | At Small Industries Development Bank of India (SIDBI) event, Union Finance Minister Nirmala Sitharaman says, “Since 1990, SIDBI has been working as a premier financial institution for the promotion, financing, and development of MSMEs. It is a unique… pic.twitter.com/2R0PIODiSV
— ANI (@ANI) May 25, 2026
She also highlighted measures taken to ease pressure on exporters, including simplification of customs procedures to help businesses reroute, store or trans-ship stranded cargo during disruptions caused by the crisis.
