A day after Narendra Modi urged citizens to conserve fuel, avoid buying gold, and work from home, the government convened a formal ministerial meeting on the West Asia crisis and said there is no shortage of petroleum products in the country.
At the same time, officials acknowledged that public sector oil marketing companies are currently absorbing losses of nearly ₹1,000 crore every day to prevent fuel prices from rising amid surging global crude oil rates.
Government’s response and PM Modi’s appeal
Rajnath Singh chaired the fifth meeting of the Informal Group of Ministers on West Asia on Monday. The meeting was attended by ministers handling petroleum, railways, civil aviation, fertilizers, ports, and science.
According to a government release, India currently holds 60 days of crude oil and natural gas reserves, along with 45 days of LPG rolling stock.
The Press Information Bureau said there was no reason for public anxiety or panic buying at fuel stations. Officials also highlighted that India’s foreign exchange reserves remain comfortable at around 703 billion dollars.
However, the ministers were informed that the country is bearing a massive financial burden because international crude oil prices remain extremely high.
The government said fuel conservation could help reduce this pressure. Referring to Modi’s recent speech in Hyderabad, the release said the Prime Minister had urged people to use petroleum products prudently and cut down on wasteful consumption to reduce the fiscal burden both now and in the future.
Later in the day, Modi repeated the appeal during an event in Gujarat. He said that whenever India had faced wars or major crises in the past, citizens had always responded responsibly to government appeals.
The Prime Minister also stressed that India spends lakhs of crores in foreign exchange importing goods from abroad, while global prices continue to rise and supply chains remain disrupted. He urged people to reduce dependence on imported products and avoid unnecessary activities that increase foreign exchange spending.
Oil firms absorb losses amid global crisis
The ministerial group noted that India remains among the few countries where fuel prices have stayed stable despite weeks of global volatility.
Officials pointed out that several countries have seen petroleum prices rise between 30 and 70 percent, while Indian oil marketing companies have absorbed under recoveries worth nearly ₹2 lakh crore in the first quarter of the current financial year. This, they said, was done to shield citizens from the impact of soaring international crude prices.
The opposition has repeatedly accused the government of refusing to reduce taxes on fuel and of eventually passing on the burden of rising oil prices to consumers.
Opposition attacks government over austerity appeals
Rahul Gandhi criticized Modi’s calls for austerity, describing the appeals as “proofs of failure” in a post on X.
He said the country had reached a point where citizens were being told what to buy, what not to buy, and how to live, while also calling Modi a compromised prime minister incapable of effectively running the country.
Senior Congress leader Jairam Ramesh suggested the Prime Minister’s remarks indicated tougher measures could be ahead, including possible fuel price hikes. He said an atmosphere was being created to make such decisions easier for the public to accept.
Akhilesh Yadav questioned why the crisis narrative had emerged only after elections concluded in four states and one Union Territory. He mocked BJP leaders for extensively using chartered flights during campaigning.
Tejashwi Yadav also attacked Modi, contrasting the current appeal to avoid gold purchases with the Prime Minister’s 2024 Lok Sabha campaign speeches defending gold ownership.
Markets react to uncertainty
Financial markets reacted sharply to the austerity messaging. The BSE Sensex fell more than 1,300 points on Monday, marking its sharpest decline since March.
Titan Company emerged as the biggest loser on the Sensex, dropping nearly 7 percent. Meanwhile, the Indian rupee closed at a record low of 95.31 against the US dollar.
PM faces criticism over travel and events
Modi also faced criticism from opposition voices and social media users over continuing roadshows after urging citizens to conserve fuel. Questions were also raised over his upcoming seven-day foreign tour covering the UAE, Sweden, the Netherlands, Norway, and Italy.
Responding to the criticism, Amit Malviya argued that Modi had not asked citizens to sacrifice but had instead encouraged conscious choices in the national interest.
He compared the appeal to similar calls made by India’s first Prime Minister, Jawaharlal Nehru, during the Korean War.
The conflict between the US and Iran currently remains under a fragile ceasefire, though the blockade around the Strait of Hormuz continues to remain in effect.
