India's Modi Urges Citizens to Reduce Fuel Consumption, Work From Home as Iran War Impacts Economy

May 12, 2026

Indian Prime Minister Narendra Modi on May 11, 2026 urged citizens to reduce petrol and diesel consumption and work from home as the US-Israeli war on Iran disrupts energy supplies. The Strait of Hormuz is effectively closed due to dual US and Iranian blockades, cutting off 90 percent of India's LPG imports. India imports about 90 percent of its oil, and the rupee dropped to a record low against the dollar as foreign exchange reserves declined.

Fuel consumption reduction measures

▪India has not rationed petrol and diesel supplies as of May 11, 2026.
▪The US-Israeli war on Iran is impacting India's economy as of May 11, 2026.
▪India has not increased petrol and diesel prices for domestic consumers as of May 11, 2026.
▪Indian Prime Minister Narendra Modi urged Indians on May 11, 2026 to reduce petrol and diesel consumption.
▪Narendra Modi stated that restrictions on fuel use are necessary to save foreign currency spent on fuel imports.

Gold purchase restrictions

▪India raised tariffs on gold in 2022 to stifle domestic demand and conserve US dollars.
▪Narendra Modi called on Indian citizens to stop buying gold for a year on May 11, 2026.

Foreign exchange reserve pressures

▪Higher energy prices caused by the US-Israeli war on Iran have reduced India's foreign exchange reserves.
▪India's central bank has intervened in the currency market by selling US dollars to support the rupee.
▪The tourism sector in the Gulf has been negatively impacted by the US-Israeli war on Iran, affecting dollar inflows to India.
▪The Indian rupee dropped to a record low against the US dollar in the week before May 11, 2026.
▪India relies on US dollar inflows from workers in the Gulf, particularly the United Arab Emirates.
▪India imports about 50 percent of its natural gas.
▪Narendra Modi urged Indians on May 11, 2026 to avoid travelling abroad.

LPG supply shortages

▪90 percent of India's LPG imports arrive through the Strait of Hormuz.
▪The Strait of Hormuz is effectively closed as of May 11, 2026 as a result of dual US and Iranian blockades.
▪India has increased the price of liquefied petroleum gas (LPG) as of May 11, 2026.
▪India imports around 60 percent of its LPG from Qatar, the United Arab Emirates, and Saudi Arabia.

Work-from-home recommendations

▪Narendra Modi urged Indians on May 11, 2026 to resume energy-saving schemes that were in place during the Covid pandemic.
▪Narendra Modi recommended that Indians prioritize work from home, online conferences, and virtual meetings on May 11, 2026.

Perspective of Indian government (Narendra Modi administration)

▪Narendra Modi stated that restrictions on fuel use are necessary to save foreign currency spent on fuel imports.
▪Narendra Modi called on Indian citizens to stop buying gold for a year on May 11, 2026.