Prime Minister Narendra Modi on Sunday made a direct appeal to the nation to return to work-from-home practices and significantly curb consumption as a global oil shock, sparked by the escalating conflict in the Middle East, begins to squeeze the Indian economy. Speaking in Secunderabad, Telangana, the Prime Minister highlighted the urgent need to conserve foreign exchange, even going so far as to suggest that families should avoid purchasing gold for weddings for at least a year.
The backdrop to these remarks is due to a volatile international market where crude oil prices have surged. This spike follows severe disruptions around the Strait of Hormuz, a vital artery for global energy supplies. While Indian consumers have largely been shielded from these fluctuations thus far, government sources suggest this reprieve is nearing its end, with a significant fuel price hike expected before May 15.
PM Modi urged a revival of the digital habits formed during the pandemic, such as online meetings and video conferencing, to reduce the national fuel bill. He framed these lifestyle changes as acts of patriotism, noting that every litre of petrol saved helps protect the national exchequer. The economic pressure is substantial; oil marketing companies are currently absorbing losses of nearly ₹30,000 crore a month, with the government effectively subsidising petrol by ₹24 per litre and diesel by ₹30 to prevent domestic inflation from spiralling.
The Prime Minister's belt-tightening advice extended beyond the petrol pump. He called for a reduction in the use of imported edible oils and urged the farming community to halve their reliance on foreign chemical fertilisers in favour of natural farming. As per Modi, not only will these changes enhance the economy of the nation but also the lives of Indian households and the environment.
Whereas countries around India like Sri Lanka and Bangladesh have had to resort to the rationing of their fuel supplies and shorter workweeks, India has been able to steer clear of such extremes due to the variety of crude oil suppliers and increased domestic production of LPG. Nevertheless, with government-owned oil companies suffering from substantial under-recovery costs, an upward revision of prices in the range of ₹4 to ₹5 per litre for petrol and diesel seems highly probable.
Also read: PM calls for restrained use of fuel amid West Asia crisis
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