India faces potential fuel price increases amid a global oil squeeze tied to West Asia tensions. Prime Minister Modi urges households to conserve fuel, delay non essential purchases, and adopt energy-saving habits to protect the economy. The government signals policy measures to cushion consumers while ensuring supply security.
India
-Gaurav Sharma
India is bracing for a possible fuel price hike as global crude costs soar, and Prime Minister Narendra Modi has asked citizens to cut petrol use, limit foreign travel and even delay gold purchases for a year, calling these steps vital to protect the economy during the ongoing global oil crisis linked to the West Asia conflict.
PM Narendra Modi warned that the world is facing disrupted supply chains, volatile energy markets and rising uncertainty, and said Indians should treat fuel conservation as a shared duty. The appeal comes amid growing speculation that domestic fuel prices could change soon, after remaining largely steady for nearly four years despite steep jumps in international crude prices.
Global crude costs hitting $126/barrel amid the West Asia conflict may trigger fuel price hikes in India as companies face ₹30,000 crore monthly losses; PM Modi urged citizens to conserve fuel and delay gold purchases for one year to safeguard the economy.
petrol and diesel prices: looming hikes and oil company losses
Government and industry officials indicated that petrol and diesel prices may be revised before May 15, as oil marketing companies struggle with heavy losses. According to the reports, Indian Oil, Bharat Petroleum and Hindustan Petroleum together face under-recoveries of about 30,000 crore every month, due to the gap between local pump prices and international crude rates.
At current global levels, the Centre and fuel retailers are estimated to be absorbing nearly 24 per litre on petrol and 30 per litre on diesel to shield consumers. If a revision is cleared, petrol and diesel prices could climb by around 4-5 per litre, while domestic LPG cylinders may cost an additional 40-50, adding pressure on household budgets.
petrol and diesel prices and the global oil crisis from West Asia
The tensions in West Asia have pushed global crude oil from around USD 70 per barrel to nearly USD 126 per barrel. A key concern is the Strait of Hormuz, a vital shipping corridor where almost 20 per cent of the world’s oil normally passes, but movement has stayed severely affected because of the conflict and related security worries.
The same crisis has forced other countries to take tough steps. Bangladesh has imposed fuel rationing, while Sri Lanka reduced official working days to manage the shortfall. India has so far avoided shortages and long queues at fuel pumps, but officials stressed that this stability depends on careful planning and cooperation from citizens in cutting non-essential fuel use.
petrol and diesel prices and PM Modi’s appeal on work from home
PM Narendra Modi urged citizens to revive habits from the Covid period to save fuel. “During the Corona period, we adopted work from home, online meetings, video conferences and developed many such systems. We had also become accustomed to them,” Modi said. “Today, the need of the hour is that we restart those practices, as it would be in the national interest, and we must once again give them priority.”
Without directly declaring that petrol and diesel prices will rise, PM Narendra Modi repeatedly highlighted the importance of using less fuel. “Petrol-diesel has become so expensive across the world. It is the responsibility of all of us that the foreign exchange spent on purchasing petrol-diesel should also be saved by conserving petrol-diesel,” he said, linking everyday choices to the national economy.
petrol and diesel prices, gold purchases and discretionary spending
One of the strongest parts of the speech focused on lifestyle choices, especially weddings and large purchases. PM Narendra Modi asked households to reconsider buying gold, which depends heavily on imports. “I would appeal to people not to buy gold for weddings for one year,” he said, arguing that delaying such purchases could save large amounts of foreign currency for India.
#WATCH | Secunderabad, Telangana | On the impact of West Asia conflict, Prime Minister Narendra Modi says, “… 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, no matter how https://t.co/lNWTmHlf4q pic.twitter.com/konOsJ7Okp— ANI (@ANI) May 10, 2026
petrol and diesel prices, edible oil and fertiliser imports
PM Narendra Modi widened the appeal beyond fuel and gold, pointing to other imports that drain foreign exchange. “The same is true for edible oil. We have to spend foreign currency on its import,” the Prime Minister said. India brings in large quantities of cooking oil every year, making even small reductions in household consumption meaningful for the external account.
“If every household reduces the use of edible oil, it is a huge contribution to patriotism. This will improve the health of the national treasury and the health of every family member.” PM Narendra Modi also turned to agriculture, highlighting fertiliser imports. “Another sector that consumes foreign currency is our agriculture. We import chemical fertilisers in large quantities from abroad,” he said.
“We should reduce our consumption of chemical fertilisers by half and move towards natural farming. This way, we can save foreign currency and protect our farms and Mother Earth.” The message targeted both farmers and consumers, suggesting that food production methods and eating habits are closely linked to India’s economic resilience during the global oil shock connected to West Asia.
petrol and diesel prices and India’s policy response so far
Officials said India has responded to the crisis with a mix of supply and tax measures. The country increased LPG production from about 36,000 tonnes per day to nearly 54,000 tonnes. Refineries have been pushed to run at more than 100 per cent capacity, while crude imports have been diversified towards suppliers in Russia, the United States and West Africa to reduce risk.
The Centre has also cut excise duties earlier to cushion consumers from international price spikes, even as global crude surged. Alongside these steps, PM Narendra Modi framed fuel saving, lower edible oil use and reduced fertiliser dependence as part of a broader national effort. #WATCH | Secunderabad, Telangana | On the impact of West Asia Conflict, Prime Minister Narendra Modi says, “In this time of global crisis, we have to make a resolution keeping duty paramount and fulfil it with complete dedication. A big resolution is to use petrol and diesel.
Data shared by sources and officials suggests that, despite government support, the strain on public finances and fuel retailers is growing as crude stays high. The table below outlines the key figures shaping the debate on future petrol and diesel prices in India.
| Indicator | Detail |
|---|---|
| Global crude price (earlier) | Around USD 70 per barrel |
| Global crude price (current) | Around USD 126 per barrel |
| Oil company monthly under-recoveries | About 30,000 crore |
| Absorbed per litre on petrol | Nearly 24 |
| Absorbed per litre on diesel | Nearly 30 |
| Possible petrol/diesel hike | About 4-5 per litre |
| Possible LPG cylinder hike | About 40-50 |
Together, these numbers and PM Narendra Modi’s speech underline how closely personal choices are linked to national finances during the current global oil crisis. With the West Asia conflict disturbing key trade routes and pushing up energy costs, the government is signalling that work from home, lower fuel use, fewer gold purchases and reduced reliance on edible oil and chemical fertilisers may be needed to keep petrol and diesel prices as manageable as possible for Indian consumers.
