Anna Hartz
Energy prices often move quickly when global conflicts disrupt supply routes. Countries that depend heavily on imports usually feel the pressure first.
Governments try different ways to control demand at home and reduce the strain on national budgets. Narendra Modi has called on citizens in India to cut fuel use and reduce spending on imports as energy costs rise due to instability in the Middle East, reports El Economista. His comments came during a public speech on Sunday.
Modi’s encouragements
He asked people to lower their consumption of petrol and diesel. He suggested using public transport whenever possible. He also encouraged car sharing when travel is necessary. For goods transport, he recommended rail whenever possible.
Oil prices have climbed above 100 dollars per barrel after disruptions linked to conflict and the partial closure of the Strait of Hormuz. This route is one of the most important shipping lanes for global energy trade. The price rise has increased pressure on import dependent economies like India.
So far, the Indian government has avoided passing the full cost of higher oil prices directly to consumers. That has helped keep retail fuel prices stable for now. But local reports suggest that price increases may be introduced soon to manage growing losses faced by state run fuel companies.
The impact is not limited to fuel. Fertiliser imports have also become more expensive. Modi urged farmers to reduce fertiliser use and rely more on domestic production where possible. He said this would help protect foreign currency reserves.
Hold back on gold
He also addressed household consumption habits. He said gold purchases place extra pressure on foreign currency spending. He suggested limiting gold buying for a year in the national interest. His comments caused a drop in shares in the jewellery sector on Monday.
He also mentioned edible oil imports. He encouraged families to reduce consumption to lower national import costs. He described it as a small but meaningful contribution to economic stability.
Other countries in the region have already taken stronger steps. Nepal, Bangladesh, and Pakistan have raised fuel prices significantly in recent months. India has so far avoided similar direct rationing measures.
Still, the situation is putting pressure on policymakers. Rising import costs affect trade balances and currency stability. Governments are now trying to slow demand while avoiding sudden shocks to households and businesses.
Sources: El Economista
