Guwahati: Addressing a BJP rally in Hyderabad, the Prime Minister said the country must conserve foreign exchange reserves and reduce fuel consumption amid growing uncertainty in global energy markets. The prolonged conflict in West Asia has disrupted shipping through the Strait of Hormuz, one of the world’s most important oil transit routes, leading to fears of long-term supply shortages.
Global crude oil prices have crossed $105 per barrel after US President Donald Trump reportedly rejected Iran’s latest peace proposals. Iran had offered to transfer part of its enriched uranium stockpile to another country while refusing to dismantle its nuclear facilities , a key demand of the United States.
India, which imports over 88 percent of its crude oil requirements has been severely affected by the sharp increase in oil prices. The rising import bill has also contributed to the weakening of the Indian rupee against the US dollar.
PM Modi said India should once again adopt practices that became common during the Covid-19 pandemic to save fuel and reduce unnecessary expenditure.
“We developed work from home, virtual meetings, video conferencing and many other methods during Corona. We got habituated to them. The need of the hour is to resume those methods,” Modi said.
He encouraged citizens to use metro rail services, carpooling, and electric vehicles wherever possible to reduce petrol and diesel consumption. The Prime Minister also stressed the need to shift freight transport from roads to railways in order to cut fuel usage.
Meanwhile, Union Petroleum Minister Hardeep Singh Puri stated that state-run oil companies are currently absorbing heavy losses to protect consumers from sudden fuel price hikes.
The Prime Minister also urged people to avoid purchasing gold for at least one year, stating that large scale gold imports place additional pressure on India’s foreign exchange reserves during times of global economic instability.
“Gold purchases are another area where foreign exchange is used extensively.In the national interest,we must resolve not to purchase gold for a year,” Modi said.
Additionally, he advised citizens to postpone non-essential foreign travel, overseas vacations, and destination weddings to help conserve foreign currency.
“The growing culture of weddings abroad, travelling abroad and vacationing abroad is becoming prevalent among the middle class. During this crisis, we should postpone travelling abroad for at least a year,” the Prime Minister added.
Government officials have warned that if disruptions in the Strait of Hormuz continue, high oil prices may persist for several more months, increasing inflationary pressures and impacting India’s economic stability.
Beyond fuel conservation and curbing imports,PM Modi also urged people to reduce edible oil consumption, minimise the use of chemical fertilisers, and increasingly adopt natural farming practices along with swadeshi products.
“We must save foreign exchange through every possible means,” he said, stressing that citizens should actively contribute towards strengthening India’s self-reliance during the ongoing global crisis.
So far, the Centre has largely maintained stable petrol and diesel prices despite rising pressure from international markets. However, officials warned that oil marketing companies may find it difficult to continue absorbing losses if crude oil prices remain high for a prolonged period.