3 min readUpdated: May 10, 2026 07:48 PM IST
With the Hormuz blockade choking off crucial global fuel supplies, Prime Minister Narendra Modi on Sunday urged people to use petrol, diesel and gas with “great restraint”. Calling it the “need of the hour” amid the ongoing West Asia crisis, the PM said that reduced dependence on imported petro products would help save foreign exchange and lessen the impact of war on India’s economy, news agency PTI reported.
Addressing an event in Hyderabad, PM Modi said the current global energy crisis highlighted the need for careful use of imported petro products. He pointed to India’s push for solar power, ethanol blending, LPG expansion and CNG infrastructure as key measures to strengthen energy security.
Modi said these steps had helped India deal with this major energy crisis.
“But, today, the need of the hour is also to use petrol, gas, diesel and such things with great restraint. We have to use imported petro products only as per need. This will not only save foreign exchange but reduce the adverse impact of war,” he said.
Modi also inaugurated and laid the foundation for development projects worth around Rs 9,400 crore in Telangana, including highway, railway and textile infrastructure initiatives.
‘Price hike imminent’
The Indian Express had earlier reported that government-owned oil marketing companies (OMCs) such as Indian Oil, Bharat Petroleum and Hindustan Petroleum were racking up costs of about Rs 30,000 crore a month on petrol, diesel and cooking gas sales. This was caused by piling under-recoveries, the difference between the retail price and the import price.
These companies have been facing severe stress as the retail price hasn’t changed despite the rising global prices, Sujata Sharma, Joint Secretary, Petroleum Ministry, had told the Indian Express.
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While the government had made it clear that it wasn’t planning to compensate the OMCs for their losses on sale of petrol, diesel, and jet fuel below market prices, sources told this newspaper that the comments on growing under-recoveries indicate a price hike is imminent. The OMCs too have been calling for an increase in prices.
The Hormuz choke
The current conflict began when the United States and Israel hit Iran in coordinated strikes on February 28. Tehran retaliated by hitting its neighbours and Israel and choking the critical maritime gateway of the Strait of Hormuz.
With an effective halt in vessel movements through the Strait of Hormuz-from where one-fifth of global oil and natural gas flows usually, supplies have been hit and prices have skyrocketed. India depends heavily on oil and gas imports to meet its energy needs, and fuel prices in the country are not linked to global oil and fuel price benchmarks.
Petrol is currently priced at Rs 94.77 per litre in Delhi, and diesel at Rs 87.67 per litre. Domestic LPG is priced at Rs 913 per 14.2-kg cylinder in the capital. Fuel prices vary across states due to differences in state levies.
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The Indian crude oil basket, which averaged $70 per barrel last year, averaged over $113 in April. Furthermore, Indian refiners incurred high additional costs due to emergency crude sourcing and a surge in shipping and insurance rates, among others.
