Prime Minister Narendra Modi has urged citizens and businesses to revive work-from-home practices, curb petrol and diesel use and defer non-essential gold purchases for a year as the Middle East war pushes crude prices higher and threatens to strain India’s import bill.Addressing a public meeting in Hyderabad on Sunday, Modi framed energy saving as an urgent national duty rather than a matter of private choice. He said families, offices and commercial establishments should reduce avoidable travel, use fuel with restraint and reconsider consumption patterns that add pressure to foreign exchange reserves at a time when global supply chains are under stress.
His appeal came as Brent crude traded above $100 a barrel after renewed tension around the Strait of Hormuz, the narrow waterway through which a large share of global oil and gas shipments usually passes. Shipping disruptions, insurance costs and rerouting delays have added to the pressure on energy-importing economies, with India particularly exposed because it depends on overseas suppliers for most of its crude requirement.
Modi’s remarks also reflected concern inside the government over the ability of state-run oil marketing companies to continue absorbing higher global costs without raising pump prices. Petrol and diesel prices have remained broadly stable in major cities, even as international crude prices have climbed sharply. That gap has widened under-recoveries for fuel retailers and revived speculation that a price increase could be considered if the oil shock persists.
Fuel prices carry political and economic sensitivity because they feed directly into transport costs, food prices and household inflation. Diesel is central to freight, agriculture and public transport, while petrol prices affect urban commuters and small businesses. Any sharp increase would risk adding to cost-of-living pressures, but holding prices unchanged for too long would shift the burden to public-sector fuel companies and, eventually, the fiscal system.
Modi linked fuel conservation with broader external-sector management. He asked people to avoid unnecessary foreign travel and foreign weddings, while also calling for a pause in avoidable gold purchases. Gold remains one of India’s largest import items after crude oil, and purchases typically rise during the wedding season and festivals. High bullion imports can widen the trade deficit and increase demand for dollars, placing additional pressure on the rupee.
The rupee has been under watch as oil prices rise, because a higher crude bill increases dollar demand from refiners. Currency weakness can further raise the landed cost of crude, creating a feedback loop that complicates inflation management. Strong services exports and remittance inflows provide a cushion, but a prolonged rise in oil and gold imports would narrow that buffer.
Modi also used the crisis to renew his push for energy diversification. He cited solar power, ethanol blending, compressed natural gas and electric mobility as part of the long-term response to imported fuel dependence. India has expanded ethanol blending in petrol and solar generation capacity, but petroleum demand remains high due to transport growth, industrial use and rising consumption in smaller cities.
The government has tried to reduce vulnerability by diversifying crude supplies and increasing purchases from multiple regions. Refiners have also adjusted sourcing patterns since the war disrupted parts of the West Asian supply chain. Yet geography still matters: disruptions near Hormuz can affect freight rates, tanker availability and market sentiment even when cargoes are sourced from alternative suppliers.
The call to revive work-from-home practices marks a notable return to a behavioural tool widely used during the pandemic. Remote work can reduce commuting fuel demand in service-sector hubs, though its impact will depend on how many employers adopt flexible schedules and how much commuting shifts from private vehicles to public transport. The measure is easier for white-collar workers than for manufacturing, retail, logistics and informal-sector employees.