India urges focus on fuel, fertiliser and forex amid Gulf crisis

NEW DELHI: Indian Finance Minister Nirmala Sitharaman said on Monday that the country should concentrate on fuel, fertiliser and foreign exchange as it deals with the fallout from the Gulf crisis. Speaking at an event in Mumbai, she said Prime Minister Narendra Modi’s call to conserve foreign exchange should be treated as especially important in the current situation.

Sitharaman referred to what she described as the 3Fs — fuel, fertiliser and foreign exchange — and linked that emphasis to Modi’s appeal earlier this month for austerity steps. The prime minister had urged Indians to save fuel and foreign exchange and to avoid buying gold, among other measures, to help manage the energy shock and broader economic pressures.

She said the country was facing strain from higher crude prices and supply disruptions after the closure of the Strait of Hormuz during the US-Israel war on Iran. According to Sitharaman, elevated prices of crude, fertilisers and gold were creating challenges on the external front.

India, the world’s third-largest importer and consumer of oil, increased petrol and diesel prices again on Monday. It was the fourth rise in May, taken as the government sought to recover part of its losses. Sitharaman also said the government’s revenue was expected to take a hit of one trillion rupees in fiscal year 2027 because of a cut in excise duties on fuel.