Petroleum and Natural Gas Minister Hardeep Singh Puri on Friday clarified that a lockdown will not be imposed in the country, as was imposed earlier during the pandemic. The minister also criticized rumors of a lockdown, calling it “irresponsible and harmful” in such a situation.
“The rumors of a lockdown in India are completely false. I want to say clearly that there is no such proposal in the view of the Government of India. At a time like this, it is important that we remain calm, responsible and united. Spreading rumors and creating panic in such a situation is irresponsible and harmful,” Puri said on Twitter.
The Minister reiterated the country’s stand on the current energy crisis. He said, “The global situation is constantly changing and we are closely monitoring the developments related to energy, supply chains and essential commodities on a real-time basis. Under the leadership of Honorable Prime Minister Narendra Modi Ji, all necessary steps are being taken to ensure uninterrupted availability of fuel, energy and other critical supplies to our citizens. We are fully prepared to deal with the emerging challenges. India has consistently shown resilience in the face of global uncertainties and we are committed to providing timely, proactive and Will continue to work in a coordinated manner.”
Puri also praised the Prime Minister’s decision to refocus the government’s own finances to protect Indian citizens from rising global energy costs.
Despite a significant rise in international crude oil prices last month, the Center chose to protect domestic consumers from the volatility seen in other major economies.
Puri said on X, “Honourable Prime Minister Narendra Modi ji, in keeping with the commitment of his government for the last four years since the beginning of the Russia-Ukraine conflict, has once again decided to bear a heavy burden on its finances for the safety of Indian citizens. The government has drastically cut its tax revenue to mitigate the huge losses of oil companies (about Rs 24/litre for petrol and Rs 30/litre for diesel) in this era of skyrocketing international prices.”
The Union Minister highlighted that “International crude oil prices have skyrocketed in the last one month, from around $70 per barrel to around $122 per barrel.”
This rapid increase resulted in steep increases in petrol and diesel prices around the world. According to the minister, “Prices have increased by about 30%-50% in Southeast Asian countries, 30% in North American countries, 20% in Europe and 50% in African countries.”
Puri said that in view of this rise in prices at the international level, the Modi government has two clear options before the Modi government, “Either increase the prices significantly for the citizens of India as all other countries have done or bear the burden on its finances so that the Indian citizens are protected from international instability.”
To further control the situation, the government imposed export tax in view of the huge increase in international prices of petrol and diesel.
“Also, due to huge increase in international prices of petrol and diesel, export tax has been imposed and any refinery exporting to foreign countries will have to pay export tax,” he said.
Puri also appreciated the timely steps taken by the Union Finance Minister to prevent the national oil crisis. He said, “My heartfelt gratitude to Honorable Prime Minister Narendra Modi Ji and Honorable Finance Minister NSITharaman Ji for this timely, bold and visionary decision!”
The Finance Minister reiterated the government’s prompt action to reduce oil prices.
He said, “In view of the West Asia crisis, the Central Excise duty on petrol and diesel for domestic consumption has been reduced by Rs 10 per liter. This will protect consumers from price rise. Honorable Prime Minister Narendra Modi has always ensured that citizens are protected from fluctuations in the supply and cost of essential commodities.”
“Additionally, a duty of Rs 221.5 per liter on export of diesel and Rs 29.5 per liter on ATF has been imposed. This will ensure adequate availability of these products for domestic consumption. This has been informed to Parliament,” Nirmala Sitharaman said on X.
The government on Friday reduced excise duty on petrol and diesel to Rs 3 per liter on petrol and zero per liter on diesel. Windfall profit tax on export of diesel has been fixed at Rs 21.5 per litre.
The cuts come amid a global energy crisis triggered by the war between the US and Israel over Iran and the resulting blockade imposed by Tehran on the Strait of Hormuz, through which one-fifth of the world’s crude oil and gas supply, or 20 to 25 million barrels per day, is sent.
Before the conflict, India bought 12 to 15 percent of that oil.
According to the notification, “In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944), read with section 147 of the Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 05/2019-Central Excise, dated 6th July, 2019, published in the Gazette of India, Extraordinary, Part II, Sub-section (i), vide number G.S.R. 488(E), dated the 6th July, 2019, namely: – In the said notification, (i) against serial number 1, in column (4), the entry “Rs. (ii) for serial number 2, “3 per litre” shall be substituted; (ii) in column (4), for the entry “nil” shall be substituted.”