Prime Minister Narendra Modi urged Indian citizens to reduce petrol and diesel consumption and avoid unnecessary travel in a national address on Sunday.
The appeal comes as rising global oil prices and supply risks linked to the Iran-related conflict in the Middle East threaten India's foreign-exchange reserves.
Modi asked citizens to adopt work-from-home practices to limit fuel use and requested that the public refrain from purchasing gold. These measures aim to stabilize the economy as the country faces an escalating import bill. According to one report, India's import bill could be threatened by $174.9 billion [1] due to the surge in oil prices.
Reports on the cause of the price spike vary. Some sources attribute the rising costs to the broader Iran war, while others state the prices stem from the tightening of global oil supplies caused by the closure of the Strait of Hormuz [2], [3].
By discouraging non-essential foreign travel and luxury purchases like gold, the administration seeks to curb the outflow of currency. The Prime Minister said that collective action is necessary to navigate the current economic volatility caused by the instability in the Middle East [4], [5].
The government's focus on fuel conservation reflects the vulnerability of India's energy security, as the nation relies heavily on imports to meet its domestic demand. The call for remote work is an attempt to lower the daily demand for petrol and diesel across urban centers [6].
“Prime Minister Narendra Modi urged Indian citizens to reduce petrol and diesel consumption.”
India's request for voluntary austerity measures signals a high level of concern regarding its current account deficit. Because India imports a vast majority of its oil, geopolitical instability in the Middle East directly impacts its foreign-exchange reserves. By targeting gold purchases and fuel use, the government is attempting to manage domestic demand and preserve liquidity to avoid a broader currency or economic crisis.
