India raised fuel prices by 3 rupees ($0.03) per liter Friday as the government moved to offset losses due to higher global oil prices, pushing the cost of daily life further onto ordinary people already squeezed by the energy crisis. In New Delhi, gasoline prices rose to 97.77 rupees ($1.17) a liter, while diesel climbed to 90.67 rupees ($1.09) a liter.
Who Pays for the Crisis
India imports about 90% of its oil and has been hit hard by rising energy prices and supply disruptions linked to the Iran war and the closure of the Strait of Hormuz. It had until now avoided raising retail fuel prices despite sharp increases in energy costs, making it one of the last major economies to pass higher crude prices on to consumers. That delay ended with Friday’s hike, and the bill lands where it always does: on people who have to move, work, and survive in a system built around fuel and profit.
Manoj Kumar, a 48-year-old taxi driver in New Delhi, said the rise in fuel prices was adding to the strain on working-class people. “For common people like us, even one rupee has great value. People work so hard from morning till evening just to make ends meet. The government is not seeing this,” he said. His words cut through the official language of “offsetting losses” and expose the hierarchy plainly: the people at the bottom absorb the shock while the apparatus above manages accounts.
Patriotism as Discipline
The price increases came days after Prime Minister Narendra Modi urged Indians to adopt voluntary austerity measures. Modi on Sunday called on people to work from home where possible, limit foreign travel and reduce purchases of gold. He described fuel conservation and saving foreign exchange as an act of “patriotism,” and encouraged greater use of public transportation, carpooling and lower fertilizer consumption. Opposition leaders said Modi’s appeal came only after a key round of state elections had concluded, noting that fuel prices were kept unchanged during the campaign.
The sequence matters. Fuel prices stayed frozen through the campaign, then rose after the votes were counted, while the public was told to treat sacrifice as patriotic duty. That is the familiar choreography of managed consent: the rulers ask for restraint after the political theater is over, and the people are expected to absorb the consequences.
Austerity From Above
Meanwhile, India’s capital has become the first state to roll out austerity measures. Authorities in New Delhi on Thursday announced fuel-saving measures, including mandatory work-from-home days for some government employees. Delhi Chief Minister Rekha Gupta said the 90-day campaign aims to reduce official fuel use and encourage people in the capital to rely more on public transportation instead of private vehicles. Under the plan, employees whose work can be done remotely will work from home two days a week, while private companies are being encouraged to adopt similar measures voluntarily.
The language of conservation sounds tidy enough from the top, but the burden still falls unevenly. Government offices get to announce campaigns; workers and commuters get the inconvenience, the uncertainty, and the higher costs. Private companies are merely “encouraged” to follow along, another reminder that the system prefers voluntary discipline when it can get it and compulsory discipline when it must.
Earlier this week, India also raised import duties on gold and silver to 15% in an effort to curb demand for imports that drain foreign exchange reserves. The Indian rupee has fallen to record lows in recent weeks as higher oil prices increased pressure on imports and foreign exchange reserves.
Energy, Land, and the Corporate Turn
India has also accelerated ethanol blending in gasoline as part of its push to cut crude oil imports. Most fuel stations across the country now sell gasoline blended with 20% ethanol, and the government has proposed expanding the use of fuels containing 85% — or even 100% — ethanol in compatible vehicles. Energy experts said blending biofuel can help shield from global energy shocks but can lead to further stressing already depleting groundwater resources, encroach on land meant for food crops and impact older vehicles’ engines.
Separately, Ola Electric's board cleared a 20 billion rupee investment to expand its EV and battery-cell technology units in India, with completion expected by May 14, 2027. The investment is roughly $208.5 million. The move is part of the company’s push toward manufacturing its own battery cells to improve profitability. While the state tells people to conserve and endure, capital keeps moving toward the next profitable frontier, with workers and communities left to live inside the consequences.