FM Sitharaman Addresses Fuel Price Hikes and Economic Resilience
Fuel Hikes Operational, Govt Took Rs 1L Crore Hit: FM Sitharaman
Image: Asianet Newsable
Union Finance Minister Nirmala Sitharaman explained that recent petrol and diesel price hikes are operational, driven by oil marketing companies due to global procurement costs. The government previously absorbed a fiscal hit of ₹1 lakh crore to shield consumers. She expressed confidence in India's economic resilience despite global challenges.
- 01The government absorbed a ₹1 lakh crore fiscal hit to keep fuel prices stable for over two months.
- 02Recent fuel price increases are attributed to oil marketing companies rather than government policy changes.
- 03Sitharaman is evaluating proposals for expanding the Gold Monetization Scheme to enhance financial returns from idle gold.
- 04She expressed trust in the Reserve Bank of India's calculations regarding its recent dividend announcement.
- 05Despite global economic pressures, Sitharaman believes India remains the fastest-growing economy due to strong domestic foundations.
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During a media briefing, Union Finance Minister Nirmala Sitharaman addressed the recent hikes in petrol and diesel prices, clarifying that these increases are operational decisions made by oil marketing companies based on global procurement realities. The government had previously absorbed a significant fiscal burden of ₹1 lakh crore to keep fuel prices stable for over two months, mitigating the impact on consumers. Sitharaman also discussed the potential expansion of the Gold Monetization Scheme, stating that proposals are under evaluation but no immediate policy changes are planned. She reaffirmed her confidence in the Reserve Bank of India's financial calculations, particularly regarding its recent dividend announcement. Despite ongoing global challenges, including the West Asia crisis and the Russia-Ukraine war, Sitharaman remains optimistic about India's economic resilience, asserting that the country's production and agricultural sectors ensure it remains the fastest-growing economy.
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The government's absorption of fuel price hikes has temporarily shielded consumers from rising costs, but future price adjustments may impact household budgets.
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