FM Nirmala Sitharaman reveals petrol & diesel excise duty cut will hit govt revenues by ₹1 lakh crore

India’s Finance Minister Nirmala Sitharaman revealed on May 25, 2026, that reducing excise duties on petrol and diesel will lead to a ₹1 lakh crore revenue shortfall for the government. The disclosure came during the 37th Foundation Day event of the Small Industries Development Bank of India in Mumbai, where she addressed economic challenges and fuel pricing. Oil marketing companies (OMCs) raised fuel prices for the fourth time in 10 days, with cumulative increases of nearly ₹7.5 per litre for petrol and diesel since May 15. The excise duty cut aims to ease consumer burden amid global energy market volatility caused by the West Asia crisis. Sitharaman defended India’s economic resilience, citing sustained industrial demand and growth despite external pressures like high import costs for gold, crude oil, and fertilizers. She criticized attempts to portray India’s achievements as pessimistic, attributing economic strains primarily to global factors rather than domestic policy. The minister also urged public sector undertakings to adhere to the 45-day payment deadline for micro, small, and medium enterprises (MSMEs). Her remarks followed ongoing debates about India’s growth trajectory, inflation, and currency volatility, which critics say are affecting household consumption.