PM Modi urged citizens to cut down on fuel use, limit overseas travel, and halt gold purchases. He highlighted the serious impact of the Iran war on the economy.
In a public address in Hyderabad, Modi noted that global fuel prices have risen sharply. He appealed to Indians to take public transport, work from home, and share rides to save fuel. India is joining other Asian countries that are promoting lower fuel consumption as energy costs rise due to tensions in the Middle East.
Why PM Modi urge to cut fuel use
On Sunday, President Trump described Iran’s counter proposal to end the conflict with the U.S. and Israel as “Totally unacceptable!” This remark dashed hopes for peace and drove global oil prices higher.
India imports about 85% of its fuel and depends on the Strait of Hormuz for around 50% of its crude oil, 60% of its liquefied natural gas, and nearly all of its liquefied petroleum gas (LPG) supplies. Rising energy costs are likely to significantly increase the country’s trade and current account deficits. The rupee is also under pressure, trading near its lowest point against the dollar.
Urge to avoid foreign travel and gold imports
PM Modi also urge to cut foreign travel and gold imports would help protect foreign currency reserves as higher oil prices raise India’s import bill. Shares of Indian jewelry companies dropped by as much as 10% on Monday, with Tata-owned jeweler Titan seeing a nearly 6% decline in early trading.
Shares of Indian airline IndiGo also fell by 2.8%. The airline is expanding its international services and expects that overseas flights will make up 40% of its daily operations by 2030, as per local media.
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