More Stories

Informist, Tuesday, Aug. 4, 2026

 

MUMBAI – The government will continue to adopt appropriate fiscal and administrative measures to mitigate the impact of future fuel price volatility, while maintaining fiscal sustainability, Minister of State for Finance Pankaj Chaudhary said Tuesday. 

 

"Ongoing efforts to strengthen domestic revenue mobilisation, adherence to the fiscal consolidation path, enhancing energy security through diversification of crude oil import sources and expansion of strategic petroleum reserves, promoting alternative and cleaner fuels, and improving energy efficiency will reduce the economy's vulnerability to external energy shocks while supporting sustainable and resilient economic growth," Chaudhary said in a written response to the Rajya Sabha. 

 

The minister further said despite severe disruptions in global energy markets, the measures taken by the government helped cushion the impact on consumers and the domestic economy. Following the onset of war in West Asia on Feb. 28, the price of Brent crude oil jumped sharply, touching a near four-year high of $122.53 in April. 

 

In March, the government lowered excise duty on petrol to INR 3 per litre from INR 13 per litre and diesel to zero from INR 10 per litre to help oil-marketing companies absorb the impact of the jump in the price of Brent crude oil. "The excise duty reduction partly offset the under-recoveries being absorbed by public sector oil marketing companies, enabling them to continue supplying fuel without disruption," he said. 

 

Further, oil companies also hiked retail fuel prices, noting the surge in global crude prices. Chaudhary said that the impact of the increase in domestic retail prices of petrol and diesel on inflation was relatively contained, with the average CPI inflation at 3.9% in Apr-Jun. "The government's strategy is to accommodate such measures within the available budgetary space by closely monitoring revenue and expenditure trends, reprioritising expenditure, and taking appropriate fiscal measures as warranted by evolving economic conditions," he said. End

 

Reported by Pratiksha

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.