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In New Delhi, petrol prices rose to 97.77 rupees per liter, while diesel climbed to 90.67 rupees per liter. Officials said the revision reflects sustained pressure from elevated global oil costs and supply disruptions linked to geopolitical tensions involving the Iran conflict and the closure of the Strait of Hormuz.
India, which imports nearly 90 percent of its crude oil requirements, has been heavily exposed to volatility in global energy markets. Until now, the country had delayed passing higher costs to consumers, even as international crude prices surged, making it one of the last major economies to adjust domestic retail fuel rates upward.
The price hike follows remarks by Prime Minister Narendra Modi urging citizens to adopt voluntary austerity measures. In his address on Sunday, Modi called for work-from-home arrangements where feasible, reduced foreign travel, and lower consumption of gold. He described fuel conservation and foreign exchange savings as an act of “patriotism” and encouraged increased use of public transport, carpooling, and reduced fertilizer consumption.
Political opposition leaders criticized the timing of the announcement, arguing that fuel prices remained unchanged during recent state election campaigns and were increased only after the conclusion of key electoral phases.
Manoj Kumar, a 48-year-old taxi driver in New Delhi, expressed concern over the impact of rising fuel costs on daily earnings, stating that even small price increases significantly strain working-class households. He said many citizens struggle to meet basic needs despite long working hours.
Earlier this week, the government raised import duties on gold and silver to 15 percent in an effort to reduce import demand and protect foreign exchange reserves. The Indian rupee has recently fallen to record lows, with rising oil import bills adding further pressure on the currency and external balances.
Separately, New Delhi has become the first administrative region to implement structured austerity measures. Authorities announced fuel-saving initiatives, including mandatory work-from-home arrangements for eligible government employees. Chief Minister Rekha Gupta stated that the 90-day campaign aims to reduce official fuel consumption and encourage greater reliance on public transportation over private vehicles.
Under the program, employees whose duties allow remote work will operate from home two days per week, while private companies have been encouraged to adopt similar flexible work practices on a voluntary basis.
India has also accelerated its ethanol blending program as part of efforts to reduce dependence on crude oil imports. Most fuel stations now supply gasoline blended with 20 percent ethanol, while the government has proposed expanding blends containing up to 85 percent or even 100 percent ethanol for compatible vehicles.
Energy experts caution that while biofuel expansion may reduce vulnerability to global oil shocks, it could also intensify pressure on groundwater resources, encroach on agricultural land, and pose challenges for older vehicle engines.
The combined measures underscore India’s growing vulnerability to global energy disruptions and its urgent push toward fiscal restraint, alternative fuels, and domestic consumption control amid sustained external economic pressure.
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