Prime Minister Narendra Modi has urged citizens to reduce petrol and diesel use as the Strait of Hormuz closure tightens global oil supplies. Speaking in Hyderabad, he called for increased use of electric vehicles, rail freight, work-from-home practices, and lower import demand to protect India’s foreign exchange reserves.
Modi framed the measures as a national duty during what he called a global crisis. He asked citizens to use petrol and diesel sparingly as energy prices rise. “In this time of global crisis, we have to make a resolution keeping duty paramount and fulfill it with complete dedication,” he said. “A big resolution is to use petrol and diesel sparingly.”
He also said India must focus on saving foreign exchange in the current situation. His remarks came as higher oil prices placed fresh pressure on India’s import bill. The prime minister urged citizens to postpone foreign travel and gold purchases for one year. He also asked households to reduce their use of cooking oil.
At the same time, Modi called on farmers to cut fertilizer use by up to 50%. He linked the appeal to broader efforts to reduce pressure on imported commodities.
India imports nearly 85% of its fuel needs. The country also relies heavily on the Strait of Hormuz for crude, gas, and LPG supplies. The strait carries about 50% of India’s crude imports. It also handles 60% of India’s liquefied natural gas and nearly all liquefied petroleum gas supplies.
As a result, any disruption creates direct risks for households, companies, and the wider economy. Higher energy costs could widen India’s trade deficit and current account deficit. The rupee has also come under strain and traded near an all-time low against the dollar. Rising oil prices add pressure as India pays for key imports in foreign currency.
India spent $174.9 billion on crude and petroleum products in the financial year ending March 2026. That amount represented 22% of its total imports. Gold also remains a major pressure point. India ranks as the world’s second-largest gold buyer after China and spent nearly $72 billion on gold imports.
India’s appeal follows similar steps in other countries. According to the IEA’s tracker, several governments have introduced measures to reduce fuel and electricity use. In March, the Philippines declared a national energy emergency. Bangladesh closed public and private universities to conserve electricity and fuel.
Pakistan moved government workers to a four-day workweek and temporarily closed schools. South Korea asked private vehicle owners to avoid driving one day each week. Meanwhile, Cambodia and Malaysia encouraged limits on air conditioner temperatures. These steps show how governments are trying to manage tighter energy markets.
The measures followed renewed tensions from the U.S.-Iran conflict. On Sunday, President Donald Trump said Iran’s counterproposal to end the war with the U.S. and Israel was “TOTALLY UNACCEPTABLE!” That statement reduced hopes for peace and pushed global oil prices higher. It also added more pressure on countries that depend on imported energy.
Indian markets reacted to Modi’s appeal and the wider import concerns. Shares of jewelry companies fell by as much as 10% on Monday. Titan, the Tata group-owned jeweler, dropped nearly 6% in early trade. IndiGo shares also fell 2.8% as investors watched travel demand risks.
IndiGo has been expanding international routes and expects overseas flights to reach 40% of daily services by 2030, according to local media reports. About 32.7 million Indians traveled abroad in 2025. That included more than 14 million leisure travelers.
UBS Securities called the Middle East conflict a historically large energy shock in a May 4 note. It cut India’s FY2027 growth forecast to 6.2% from 6.7%. Nirupama Rao, former Indian ambassador to the U.S., China, and Sri Lanka, told CNBC’s Inside India that she did not believe an economic shock was near. Still, she said India faces difficult times ahead unless peace or a resolution emerges in the Middle East.
Modi’s fuel-saving appeal comes as India faces rising oil risks from the Strait of Hormuz closure. The call targets petrol, diesel, gold, travel, and import demand as higher energy costs pressure the rupee, trade deficit, and foreign exchange reserves.