Narendra Modi, the Prime Minister of India, in response to the global surge in energy prices caused by the closure of the Strait of Hormuz, has urged citizens to help ease pressure on the country’s foreign exchange reserves by saving fuel, limiting travel, and reducing imports.
He emphasized that, under the current circumstances, India needs to pay “special attention” to its foreign currency reserves.
Modi said that to reduce fuel consumption, work-from-home arrangements and online meetings, which became widespread during the COVID-19 pandemic, should be resumed. He also asked people to use public transportation such as the metro, trains, and shared vehicles as much as possible.
Referring to pressure on foreign exchange resources, the Prime Minister asked citizens to cut down on gold purchases for weddings and non-essential foreign trips, at least for one year.
He described reducing edible oil consumption as “healthy and patriotic” and encouraged families to participate in this effort.
Modi also asked farmers to halve their use of chemical fertilizers. At the same time, the Indian government, the world’s third-largest oil importer and consumer, announced that it currently has no plans to raise fuel prices despite the global price surge.
Following the recent continuation of the U.S. conflict with Iran, global fuel prices have experienced sharp fluctuations and temporary spikes. Experts say disruptions in shipping through the Strait of Hormuz have played a significant role in the increase in fuel prices.
India imports over 85% of the crude oil it needs. Iraq, Saudi Arabia, and the United Arab Emirates are traditional and strategic suppliers of fuel to India.
After the outbreak of the war in Ukraine, Russia—under U.S. and European energy sanctions—has become India’s largest oil supplier, as India has significantly increased its purchases from Moscow by taking advantage of special discounts.
According to reports, many governments are currently facing challenges in controlling fuel prices, and emergency reserves in some countries are running low.
Writer:Salima Hakimi
