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West Asia crisis not just geopolitical issue, will result in higher fuel costs for common people: FM
May-26-2026

As prices of petrol and diesel were hiked for the fourth time in a span of 11 days, Union Finance Minister Nirmala Sitharaman has cautioned that the West Asia crisis is not just a geopolitical issue, but will result in higher fuel costs for common people and businesses, impacting shipping and supply chains. She said the government had foregone more than Rs 1 lakh crore annually in tax revenues through excise duty cuts on petrol and diesel to shield consumers from fuel inflation triggered by the West Asia conflict.

The minister acknowledged that it is a challenge for the small business units to plan for the future, and also added that the crisis, which has been running for over 80 days now is also a challenge for countries, including India. She said the government's approach is focused on protecting citizens, supporting micro, small and medium enterprises, safeguard exporters and keeping supply chains moving and maintaining economic stability. She said the government has taken a series of steps to protect exporters, including the simplifiation of customs formalities, which ensured that enterprises were able to bring back cargo, reroute them or store and trans-ship the stranded cargo.

Petrol and diesel prices were increased by Rs 2.61 and Rs 2.71 per litre, respectively, on May 25, marking the fourth hike in under two weeks as state-owned fuel retailers continued to align pump prices with rising global crude oil costs due to West Asia conflict. With the latest revision, cumulative increases in fuel prices since revisions resumed on May 15 have nearly reached Rs 7.5 per litre, raising concerns over inflation and higher transportation costs across sectors.
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