With Brent crude climbing past $107 a barrel on Tuesday, May 12, and uncertainty lingering over the Strait of Hormuz, Prime Minister Narendra Modi’s push for reduced fuel use and limited travel reflects a wider international response to escalating energy pressures.Governments across regions are increasingly urging citizens to cut consumption, avoid non-essential mobility, adopt remote work, and conserve electricity as fuel costs surge and fiscal stress deepens.
Geopolitics continues to cloud energy outlook
The standoff between the United States and Iran has stretched into its third month, keeping global oil supply dynamics under strain. While a ceasefire has been in effect since April 8, its durability remains uncertain, offering limited confidence to markets.On Monday, US President Donald Trump said the agreement was “on life support”, underscoring persisting differences over key Iranian demands. The extended geopolitical friction is expected to keep crude prices firm, heightening concerns around inflation, currency stability, and external balances worldwide.India is already feeling the spillover. Higher oil prices are set to push up the current account deficit, even as capital flows stay weak. Overseas investors have pulled more than $20 billion out of Indian equities since the conflict escalated, with early estimates pointing to nearly $900 million in additional outflows on Monday.External pressures build on rupee, reserves
ANZ Bank has flagged concerns that sustained outflows alongside a widening external gap could weigh on the rupee and deplete foreign exchange reserves. The timing of the shock is particularly challenging, as it coincides with a cyclical recovery phase in India’s economy.Economists now expect India to post a third straight balance of payments deficit this financial year, prompting downward revisions to growth forecasts and upward adjustments to inflation projections. Currency estimates have also been revised, with ANZ lowering its December rupee target to 97.5 per dollar from 93 earlier. BMI, a unit of Fitch Ratings, has warned that the rupee could weaken further toward the 100 mark if geopolitical risks intensify.Energy conservation measures gain global tractionIndia’s approach is not an outlier. Data tracking global policy responses shows that around 40 countries, along with the European Commission, have rolled out emergency or semi-emergency energy-saving measures amid the ongoing crisis.Advanced economies have largely relied on fiscal tools such as tax cuts on fuel, targeted subsidies, and anti-profiteering safeguards, alongside sector-specific support for transport and agriculture.In contrast, emerging and developing economies have taken more direct steps to curb consumption. According to the global tracker:Around 18 countries have implemented mobility restrictions, including fuel rationing, alternate-day driving rules, and incentives for public transport and electric vehiclesNearly 13 nations have expanded work-from-home or flexible working frameworks, particularly in the public sectorA small group of countries has introduced limits on LPG or cooking fuel usage through rationing or substitution policiesMore than 35 countries have launched large-scale conservation campaigns focused on reducing electricity and fuel demandCountries tighten rules to cut consumptionSeveral governments have operationalised these measures through concrete interventions:Remote working and shorter work weeks have been introduced in countries such as Pakistan, Indonesia, Sri Lanka, and others to reduce commuting demandTemperature limits in public and commercial spaces—ranging between 24°C and 26°C—have been enforced in economies like Bangladesh, Singapore, and Thailand, while Jordan has barred air-conditioning in government officesOfficial travel has been curtailed in multiple countries, including bans on non-essential foreign trips and reduced domestic movement for public sector employeesEducation systems in nations such as Bangladesh, Pakistan, and Peru have shifted to online modes or reduced academic weeks to lower energy usagePublic campaigns across countries like the UK, Spain, Australia, and Singapore are promoting behavioural changes, energy efficiency, and reduced consumptionTransport-focused measures, including fuel caps, speed limits, and biofuel mandates, have been adopted in several Asian and African economiesStructural initiatives such as solar adoption, electrification, and heat pump incentives are being accelerated in parts of Europe and beyondIn more extreme cases, countries including Sri Lanka, Madagascar, and the Philippines have declared energy emergencies or enforced temporary restrictions on fuel distribution
Taken together, these developments indicate that India’s call for restraint is part of a broader global playbook, as governments respond to one of the most severe energy shocks in recent years.(Edited by : Ajay Vaishnav)First Published: May 12, 2026 11:01 PM IST
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