Arabic version: الهند تزيد أسعار الوقود

India has raised fuel prices by about 3 percent as the energy crisis driven by the US-Israel war on Iran impacts the economy. The government in New Delhi announced a price hike of 3 rupees ($0.03) per litre on Friday, with gasoline prices now at 97.77 rupees ($1.02) per litre and diesel at 90.67 rupees ($0.94). According to Al Jazeera, this move is aimed at offsetting losses triggered by supply shortages.

As the world’s third-largest oil importer, India relies heavily on foreign oil, with about 90 percent of its consumption coming from overseas. Approximately half of the country’s usual crude supplies transit through the strategically important Strait of Hormuz, making India vulnerable to rising energy prices and supply disruptions.

Prime Minister Narendra Modi recently urged citizens to adopt voluntary austerity measures, advocating for reduced travel, increased use of public transport, and lower purchases of gold. Modi described saving fuel as an act of “patriotism,” encouraging people to work from home whenever possible.

The price increase comes after a key round of state elections, during which fuel prices remained unchanged. Opposition leaders have criticized the timing of Modi’s appeal for austerity, suggesting it is politically motivated. In response to the rising fuel prices, the Indian capital has begun implementing fuel-saving measures, including mandatory work-from-home days for certain government employees.

Additionally, India has accelerated its efforts to blend ethanol into gasoline as part of a strategy to cut crude oil imports. Many fuel stations now offer gasoline blended with 20 percent ethanol, with plans to expand to higher blends. In a bid to bolster energy security, India has also signed agreements with the United Arab Emirates (UAE) on oil and gas and strategic defense cooperation, coinciding with Modi’s five-nation tour focusing on energy security.