Outside Delhi, roadside cook Ramesh Verma has stopped checking the domestic gas price each morning — the numbers only make him anxious. The makeshift eatery he runs depends on a commercial LPG cylinder, whose cost has jumped from about 2,078 rupees to 3,071 rupees ($21.7 to $32.1) in three months — a rise of nearly 48% that is rapidly eating into the tiny margins that keep his business afloat.
“I cannot charge truck drivers and laborers more per plate,” Verma said, wiping down tables after a lunch rush. “If prices go up too much, they stop eating here. So I absorb the loss ’til I can’t.” Customers are already cutting back on small, regular purchases such as tea and snacks, he added.
What once seemed like a distant conflict in West Asia has begun to touch everyday life in India. Rising global energy prices linked to the Iran war and disruptions around the Strait of Hormuz have pushed fuel and gas costs higher. Last weekend, Prime Minister Narendra Modi urged citizens to adopt voluntary austerity — asking people to cut fuel consumption, work from home where possible, postpone foreign travel, avoid unnecessary imports and delay gold purchases — framing the appeal as patriotic and necessary to protect India’s economy from external shocks.
Modi delivered the message at a rally in Secunderabad, saying the West Asia crisis was one of the worst in the decade and assuring listeners that India would weather the storm. Critics note the timing came immediately after an intense state election campaign full of costly roadshows and rallies, prompting accusations that difficult economic messaging was delayed until after voting.
For ordinary Indians, the prime minister’s appeal has raised a question: is this a call for short-term solidarity or the first warning of persistent hardship? So far, there are no mandatory restrictions or rationing orders and fuel pump prices have not been raised despite soaring crude values. Still, the knock-on effects are visible across the economy.
State-run oil distributors are reportedly losing about $105 million (€97 million) daily as they absorb higher costs. Liquefied petroleum gas prices have climbed sharply for both households and businesses, squeezing vendors who rely on commercial cylinders. In wholesale markets like Lucknow’s vegetable bazaars, traders say customers are buying smaller quantities and bargaining harder. “People are nervous,” trader Ranjit Prasad told reporters. “The prime minister says save fuel and spend carefully. But ordinary people are already cutting everything possible.”
India imports more than 80% of its crude oil, leaving the country vulnerable to turmoil abroad. As oil prices rose, the import bill widened and foreign exchange reserves fell — reportedly by nearly $38 billion in two months. The weaker rupee combined with expensive imports, including large annual gold purchases, has intensified pressure on the currency and inflation.
Economists warn that energy price hikes do not remain confined to fuel bills. “Commercial LPG prices affect the entire informal consumption chain — eateries, transport-linked services and small businesses,” said Lekha Chakraborty of the National Institute of Public Finance and Policy. When energy costs rise sharply, she added, the burden transmits into retail prices, compresses household consumption and disproportionately affects lower-income groups who spend a larger share of income on essentials.
The human impact is already apparent. In Chennai, auto-rickshaw driver Murugesan Kumar says more people walk short distances instead of taking rides. “Everyone is saving money now,” he said. “I heard [Modi’s] speech and thought… what exactly are poor people supposed to cut further?” In Pune, homemaker Sunita Deshpande quietly canceled a planned summer trip to Thailand after the rupee weakened and travel costs climbed. “Nobody needed a speech to tell us things are becoming expensive. Food inflation is going up,” she said.
Small businesses and eateries that use LPG are particularly exposed. Many customers cannot bear higher menu prices, forcing vendors either to accept smaller profit margins or pass increases on to already-strained households. Some households are reverting to cheaper, more polluting fuels where gas becomes unaffordable.
The opposition has seized on the anxiety to accuse the government of asking the public to shoulder the consequences of broader economic mismanagement. Leaders like Rahul Gandhi and regional figures such as Samajwadi Party’s Akhilesh Yadav have criticized the timing and substance of the appeal, calling it an admission of failure and arguing that elites, not ordinary citizens, should change spending habits first. The ruling Bharatiya Janata Party rejects those claims, describing the crisis as external and urging restraint as an act of national solidarity to shield India from deeper shocks.
Beyond immediate economic indicators, a broader psychological effect is spreading: even where supplies remain adequate, rising prices, currency pressure and warnings from officials are creating a mood of insecurity. Migrant workers who rely on remittances are affected by weakening global demand, and some communities are already seeing people return from jobs abroad.
Back at his eatery, Verma counts a day’s takings and wonders how long he can keep meals affordable as his own costs climb. He has never traveled abroad, does not buy gold and already conserves fuel because he cannot afford waste. “I don’t need the government to teach me austerity,” he said. “People like us have lived carefully our whole lives. The fear is that life is about to become even harder.” Edited by: Darko Janjevic