THE JHARKHAND STORY DESK
New Delhi, May 25: Union Finance Minister Nirmala Sitharaman on Monday said India must closely monitor the “three Fs” — fuel, fertiliser and forex — amid rising global uncertainty triggered by the ongoing US-Iran conflict and surging crude oil prices.
Addressing the 37th anniversary event of the Small Industries Development Bank of India (SIDBI) in Mumbai, Sitharaman said fertiliser prices had reached “unimaginable levels” and stressed the importance of conserving foreign exchange reserves.
“There is a need to focus on the three Fs — fuel, fertiliser and forex,” Sitharaman said.
Her remarks came on a day when petrol and diesel prices were increased for the fourth time in less than two weeks. Petrol prices have risen by Rs 7.38 per litre in the past 11 days.
Crude Oil Surge Impacting India
The rise in fuel prices follows disruptions in the Strait of Hormuz, a key global oil supply route. India imports nearly 85-90 percent of its crude oil requirement, making it vulnerable to global price shocks.
Sitharaman said Prime Minister Narendra Modi’s recent appeal to conserve foreign exchange reserves had become “very important” in the current situation.
Apart from fuel and fertiliser prices, she said soaring gold prices were also creating challenges for India’s external sector.
The Prime Minister had recently urged citizens and industries to avoid non-essential imports, unnecessary foreign exchange outflows, discretionary foreign travel and even gold purchases for a year.
‘Middle East Crisis Has Wider Economic Impact’
The Finance Minister said the Middle East crisis was affecting businesses and ordinary citizens beyond geopolitical concerns.
“For businesses and common people, it can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders,” she said.
At the same time, Sitharaman dismissed what she termed “fearmongering” over the economy and asserted that India’s domestic economic situation remained “positive and resilient”.
“India cannot afford fearmongering. We need to give confidence to our people with our words and with our actions,” she said.
Centre Defends Fuel Price Management
Sitharaman defended the Centre’s handling of fuel prices, stating that the government had already taken a major revenue hit by reducing excise duties on petrol and diesel.
“The government is estimated to take a revenue impact of over Rs 1 lakh crore” due to excise duty cuts, she said.
The Finance Minister also highlighted concerns in the MSME sector, saying delayed payments worth Rs 8.1 lakh crore were affecting working capital and growth. She urged public sector undertakings to clear dues to MSMEs within the mandatory 45-day period.
Despite global economic uncertainty, Sitharaman said India continued to witness strong GST collections, steady domestic demand and improving private sector investment.