Modi Asks Indians to Reduce Fuel, His Minister Says No Supply Problem; Rebel Group of ADMK Announce Support to Vijay’s Party; India’s Cities Are the Hottest in the World
US Ambassador Attends Himanta Biswa’s Swearing in, Crooked Corporate Chickens Are Coming Home to Roost, Chief Minister Vijay Appoints Astrologer in his Office
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Snapshot of the day
May 12, 2026
Sidharth Bhatia
There is no shortage of fuel in India and “no problem” on the supply management side, Union petroleum and natural gas minister Hardeep Puri said today, even as Prime Minister Narendra Modi yesterday and on Sunday urged Indians to adopt austerity measures such as reducing fuel use, working from home when possible and avoiding foreign travel and gold purchases. With Modi’s remarks coming almost immediately after the conclusion of the latest round of assembly elections, Puri denied that polls and fuel price hikes are connected, but he did not rule out such a move either: “If you look at the fact that my oil companies are losing, what, Rs 1,000 crore every day … In that context, how long can you keep it like this?”, he asked, pointing to the ongoing upward march of oil prices. Modi’s remarks, the minister named in emails related to disgraced financier Jeffrey Epstein said, were a call to “look at our lifestyle” amid the “unending” West Asia crisis.
On the other hand some have pointed out that the Modi government never brought down oil prices even amid lower crude prices globally for the last three years or so. “Who made money? The govt, and the oil cos … They should take the hit now,” one executive argued on X.
But the reality is hard to ignore. The inexorable rise in oil prices and the dimming hope of a resolution to the West Asia crisis triggered by the US and Israel’s strikes on Iran has caused the rupee to plumb another new low today, of 95.7375 to the dollar. It has not helped that foreign portfolio investors have been consistently pulling out large amounts from Indian equities.
Modi’s sudden call for austerity measures has prompted speculation about growing pressure on India’s energy security. One factor may be the possible expiry of the US sanctions waiver that has allowed India to continue purchasing Russian oil. The waiver is due to expire on 16 May, and there are indications that Washington may not extend it, potentially tightening energy supplies for India at a time of global uncertainty and also amid trade negotiations between the two countries. The US is already using its Section 301 investigation into trade barriers as part of broader talks, with an American delegation expected to visit India this week for further trade deal talks.
Against this backdrop, India has reportedly declined Russia’s offer to supply liquefied natural gas cargoes that fall under US sanctions, despite shortages linked to tensions in West Asia. According to The Hindu, one tanker bound for India remains in limbo as negotiations continue over which cargoes would be permitted under the sanctions regime.
Meanwhile, signs of economic restraint were visible even before Modi urged citizens to avoid foreign travel and curb spending on overseas weddings. RBI data,
