Work From Home, Save Fuel - Govt
The war in the Middle East has triggered a global oil shockwave. In India, the oil crisis has already sparked fears of an upcoming fuel price hike. Adding to these, Prime Minister Narendra Modi on Sunday, asked citizens to save petrol, avoid unnecessary travel and to shift back to work-from-home culture. He also urged them to avoid buying Gold for weddings for a year. All these are targeted at saving foreign exchange.
The global oil crisis has brought about new highs in fuel prices in several countries- USA to Pakistan. Oil marketing companies in India have been silently cushioning the pressure and keeping the petrol and diesel prices steady. This might change in the coming days, and the PM’s speech can be seen as an early warning. In it, Modi talks about adopting work from home, so that daily travel can be avoided.
"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. 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" he said, addressing a gathering in Telangana’s Secunderabad.
Global crude oil prices have lately been scaling new heights. From $70 per barrel, they climbed to $126 per barrel due to the West Asia war and subsequent disruptions around the Strait of Hormuz.
This is one of the most important oil routes in the world. Disruptions here have upset the supply in many countries including India. These have put pressures on oil companies to increase prices. Now, instead of rolling out a hike right away, India seems to be trying to reduce consumption.
“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,” The PM said in his speech.
For inevitable travel needs, the Prime Minister has asked citizens to resort to metro rail and other public transport systems or even to opt for car-pooling services whenever possible. He also called for increased adoption of electric vehicles. The acceptance of EVs has lately been spiking, and the latest government direction would only boost their adoption further.
India Today reports that the government and industry sources have indicated that fuel prices would soon be revised in the country. If so, it will be the first major hike in nearly four years. The publication also reports that this will happen before May 15, 2026.
It also says that oil marketing companies are currently battling massive under-recoveries caused by global crude prices. Indian Oil, Bharat Petroleum and Hindustan Petroleum, according to reports, are collectively facing losses of nearly Rs 30,000 crore every month. The government and oil companies are reportedly absorbing nearly 24 per litre on petrol and 30 per litre on diesel, to avoid a price hike.
If the revision gets approved, petrol and diesel prices could go up by Rs 4-5r per litre. More importantly, domestic LPG may become dearer by Rs 40-50!
Beyond petrol and diesel, PM Modi has also requested citizens to reduce edible oil consumption and urged farmers to rely less on imported chemical fertilizers. Both these will help in saving foreign exchange.
“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.”- said Modi, in his speech.