Last week, the Prime Minister of India appealed to the public not to waste petrol and diesel, to use carpooling for commuting to work, to avoid purchasing gold for one year and to reduce unnecessary spending on foreign tours.
Why did he appealed to the public?
It is widely known that the ongoing Iran- USA war has severely disrupted the global oil supply. The Strait of Hormuz is largely closed and only a limited number of tankers are able to pass through it. India is one of the largest oil importers in the world. It is relying on imports for more than 85% of its total oil requirement. This naturally raises concerns about a potential shortage of oil in the country.
However, the situation is not limited to supply constraints alone. A more serious issue is the declining value of the Indian currency - the rupee or INR, in comparison to major global currencies, especially the US dollar. Since India imports petroleum, chemicals, edible oil and pulses from other countries, it requires substantial amounts of foreign currency to make these payments. As a result, the rupee is under significant pressure due to the current global conditions. Additionally, India imports large quantities of gold which further increases the demand for foreign currency and weakens the rupee.
Therefore, the Prime Minister urged citizens to conserve foreign exchange so that India does not face a payment crisis. Indians should treat this as a serious call to action. They must reduce fuel consumption, use energy more efficiently and restrain their desire to purchase gold.
In my view, no matter how much money people have to buy, they ought to conserve fuel in all the situations because it's resources are limited and more consumption increases more pollution.
Thanks!
