Modi Urges Indians to Cut Gold Purchases and Fuel Use

Prime Minister Narendra Modi has appealed to Indians to stop buying gold for a year, revive working from home, limit foreign travel and use public transport to ease pressure on the country's foreign exchange reserves. The requests, made at a public event in Hyderabad on Sunday, also include a call for farmers to cut fertilizer use by as much as 50 percent.

Modi said the austerity steps would reduce fuel consumption and help the economy weather a surge in global energy prices caused by the continuing crisis in the Middle East. India imports 90 percent of its oil. Its crude import bill has risen sharply since the Strait of Hormuz, a key chokepoint for tanker traffic, was shut for more than two-and-a-half months.

More than 40 India-bound vessels, nearly half carrying energy products, remain trapped near the strait, according to officials. "In the current situation, we must place great emphasis on saving foreign exchange," Modi said. " >"Patriotism is not only about the willingness to sacrifice one's life on the border.

" — Narendra Modi, May 10 2026 (BBC News) The measures echo restrictions used during the Covid-19 pandemic. Modi urged people to carpool, take the metro and avoid non-essential foreign trips. The government has so far avoided raising petrol and diesel prices at the pump despite mounting pressure on state fuel retailers.

Indian markets reacted immediately.

The benchmark Sensex index fell more than 1,000 points in early trade on Monday, with analysts citing Modi's remarks as one factor amid fears of prolonged disruption. The rupee has hit record lows in recent weeks, increasing the cost of imports and adding to inflation pressure.

In the financial year that ended March 31, India spent $174.9 billion on crude oil and refined products and another $72 billion on gold imports. Oil prices climbed further on Monday, with Brent crude exceeding $103 per barrel and West Texas Intermediate near $100.

The prolonged closure of the Strait of Hormuz has been described by the International Energy Agency as the largest supply disruption in history.

Hundreds of thousands of jobs are at risk in factories producing glass, plastic products and tiles. Dwindling fertilizer supplies have raised concerns about lower farm output and higher food prices. Opposition leaders criticized the appeal. Congress party leader Rahul Gandhi said the suggestions showed the government was shifting responsibility onto citizens instead of taking accountability for planning failures.

"[Modi's suggestions] aren't sermons - these are proofs of failure," he said in a post on X.

China ordered refineries to halt fuel exports temporarily while some airlines cut flights. Australia has offered free or reduced public transport fares in some states. The Philippines declared a national emergency in March, providing subsidies to transport drivers and introducing a four-day work week for civil servants.

Sri Lanka implemented fuel rationing and temporarily closed schools and government offices on Wednesdays. Analysts said Modi's remarks signal that the government may soon issue formal directives to curb energy use, with a possible revision of petroleum product prices on the horizon.

India relies on the Middle East for about 50 percent of its crude imports, 60 percent of liquefied natural gas and nearly all of its liquefied petroleum gas used for cooking.