Prime Minister Narendra Modi has urged Indian citizens to conserve fuel, gold, and fertilizer to mitigate the impact of a global oil price shock.

The call for conservation comes as India faces significant threats to its foreign-exchange reserves and energy security. Disruptions in Persian Gulf shipping routes, particularly the Strait of Hormuz, have driven up crude prices and created supply instabilities that threaten the national economy.

Modi said, "I urge all Indians to conserve fuel, gold and fertilizer during this oil shock" [1]. To address the crisis, the Indian government is promoting the expansion of renewable energy and increasing domestic energy production to move toward full energy independence.

Economic projections for the region remain volatile. A base-case scenario from S&P Global analysis projects oil prices at $130 per barrel in 2026 and $100 per barrel in 2027 [2]. While some analysts suggest that India's strong economic fundamentals will cushion the blow [2], other reports indicate that analysts have already begun cutting India's GDP growth forecasts due to the energy supply shock [3].

The crisis has also shifted into the political arena. In state polls, voters are judging the administration based on its handling of industrial disruptions and cooking-gas shortages caused by the Middle East crisis [4].

Despite the political pressure, the government continues to emphasize a transition toward sustainable energy to reduce reliance on volatile foreign markets. The current strategy relies on a combination of public austerity and long-term infrastructure investment in green energy to stabilize the economy against further shipping disruptions in the Gulf.

“"I urge all Indians to conserve fuel, gold and fertilizer during this oil shock."”

India's dual approach of public austerity and accelerated renewable investment highlights the vulnerability of its economy to Middle Eastern geopolitical instability. While strong fundamentals may prevent a total collapse, the downward revision of GDP forecasts suggests that the cost of energy imports is outweighing the current domestic cushions, turning energy security into a critical political liability for the Modi administration.