In the Lok Sabha, Samajwadi Party (SP) MP Zia ur Rehman questioned the Finance Minister about the prices of crude oil. The SP MP asked whether the government has reviewed the impact of rising global crude oil prices on inflation in the country and if so, what are the details?
Further, what are the details of the corrective steps being taken by the Government to manage inflationary pressures and whether any fiscal measures have been proposed by the Government to provide relief to common consumers and if so, the details thereof?
Union Finance Minister answered the question of SP MP
Responding to the SP MP’s question, Union Finance Minister Nirmala Sitharaman said that global crude oil and Indian basket prices were falling for the last one year, until the geopolitical conflict started in West Asia on February 28, 2026. From the end of February to March 2, 2026, the price of crude oil (Indian basket) increased from $69.01/barrel to $80.16/barrel. Since India’s inflation is at a low level, the impact on inflation is not expected to be much at this time.
He said that according to the October 2025 monetary policy report of the Reserve Bank, if crude oil prices are 10 percent higher than estimated and its entire impact falls on domestic prices, then inflation could be 30 basis points higher. However, the medium-term impact of a rise in global crude oil prices on inflation depends on a number of factors, including exchange rates, global demand and supply, monetary policy, general inflation conditions and impact rates.
Further, the Finance Minister said the average retail inflation (CPI) declined from 5.4% in 2023-24 to 4.6% in 2024-25 and 1.8% in 2025-26 (April-January). Inflation in January 2026 was 2.75%, which is close to the low end of the RBI’s target of 4% ± 2%. For inflation management, the Monetary Policy Committee of RBI has cut the rate by a total of 125 basis points from February 2025 till now.
Finance Minister gave information in Lok Sabha
The Finance Minister informed that the government has also taken several administrative, financial and trade policy steps, which include increasing the stock of essential food items, selling grains in the open market, promoting imports, restricting exports, imposing stock limits, selling food items at cheaper rates under the Bharat brand, market intervention for perishable items, cutting fuel taxes, increasing storage capacity and income tax exemptions.
