{"id":89509,"date":"2026-05-11T00:00:00","date_gmt":"2026-05-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/mena-india\/?p=89509"},"modified":"2026-05-11T11:38:05","modified_gmt":"2026-05-11T11:38:05","slug":"india-is-publicly-saying-it-can-no-longer-absorb-the-crude-hike","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/mena-india\/2026\/05\/11\/india-is-publicly-saying-it-can-no-longer-absorb-the-crude-hike\/","title":{"rendered":"India is publicly saying it can no longer absorb the crude hike"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> India's prime minister is asking citizens to use less fuel, buy less gold, and <\/strong><strong>defer overseas travel for a year <\/strong>\u2014 a Covid-era appeal that signals just how much pressure the Iran crisis is putting on the Gulf-India corridor. With Brent at USD 106 \/ bbl, the INR at a <a target=\"_blank\" href=\"https:\/\/www.moneycontrol.com\/news\/currency\/rupee-weakens-to-record-low-of-95-17-vs-usd-after-modi-s-fuel-saving-appeal-crude-oil-surge-13914851.html\" style=\"\">record low<\/a> of 95.17, and US President Donald Trump <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/egypt\/2026\/05\/11\/travco-targets-4q-launch-for-new-private-airline\/\" style=\"\">rejecting Iran's latest peace proposal<\/a> on Sunday over Hormuz, Prime Minister Narendra Modi's message yesterday was blunt. \u201cIn the current situation, we must place great emphasis on saving foreign exchange,\u201d he said (<a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=CVcjdrtBHJ4\" style=\"\">watch, run time: 19:00<\/a>).<\/p>\n\n<p class=\"tag-border-left\">Why it matters<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The Gulf's biggest Asian customer is engineering its own demand destruction.<\/strong> For producers like Saudi Aramco and Abu Dhabi National Oil Company, this complicates volume planning and erodes pricing power on term contracts with Indian refiners. And Modi's specific call to defer gold purchases for a year cuts directly through Dubai's bullion ecosystem \u2014 the conduit for India's diaspora and wedding-linked gold demand and India's second-largest <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-11\/modi-asks-indians-to-stop-buying-gold-hitting-jewelry-stocks?srnd=phx-india-v2\" style=\"\">import<\/a> after oil. A sustained pullback hits the emirate's trading volumes and margins on top of cooling energy demand.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The asks: <\/strong>Cut fuel use, avoid gold, curb non-essential imports, work from home, switch to public transport, eat less cooking oil, defer overseas travel, and \u2014 most strikingly \u2014 farmers to cut fertilizer use by up to half. \u201cToday, the demands of the times are such that if we restart these systems, it will be in the national interest,\u201d Modi <a target=\"_blank\" href=\"https:\/\/www.moneycontrol.com\/news\/india\/restart-work-from-home-pm-modi-urges-revival-of-covid-era-work-culture-as-west-asia-conflict-hits-global-economy-13914312.html\" style=\"\">said<\/a>.<\/p>\n<p class=\"tag-border-left\">Markets read it the way Modi intended <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The INR slid 0.75% intraday to its record low before the Reserve Bank of India (RBI) <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/india\/rupee-set-weaken-oil-jump-modi-calls-fuel-conservation-2026-05-11\/\" style=\"\">reportedly<\/a><\/strong><strong> intervened<\/strong>, with state-run lenders selling USD to stem losses. The Nifty 50 dropped over 1%. Defence Minister Rajnath Singh chaired an informal <a target=\"_blank\" href=\"https:\/\/www.aninews.in\/news\/national\/politics\/defence-minister-rajnath-singh-chairs-informal-group-meeting-on-evolving-west-asia-situation20260511121039\/\" style=\"\">ministers' group<\/a> today to review energy security, trade exposure, and market volatility \u2014 the kind of meeting governments hold when they're preparing for something.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Stockpiles are the under-reported pressure point. <\/strong>Global oil inventories drew down by 4.8 mn bbl \/ d between 1 March and 25 April \u2014 well beyond historical norms, per Morgan Stanley estimates cited by <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-09\/iran-war-is-draining-world-s-oil-buffer-at-unprecedented-pace?srnd=phx-india-v2\" style=\"\">Bloomberg<\/a>. India\u2019s own oil inventories are at a 10-year seasonal low, down roughly 10% since the war began. The Petroleum Ministry <a target=\"_blank\" href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2259146&reg=3&lang=1\" style=\"\">insists<\/a> refiners hold enough crude, yet state-run refiners say a meaningful share has already been burned.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/mena-india\/2026\/05\/01\/this-afternoon-enbd-nears-rbl-takeover-after-sebi-nod-india-plans-to-add-62-vessels-to-its-commercial-fleet\/\" style=\"\">fuel-price freeze<\/a><\/strong><strong> is the bill no one wants to pay.<\/strong> State-run refiners \u2014 Indian Oil, BPCL, and HPCL \u2014 are absorbing <a target=\"_blank\" href=\"https:\/\/economictimes.indiatimes.com\/industry\/energy\/oil-gas\/rs-1600-1700-cr-a-day-rs-1-lakh-cr-in-10-weeks-cost-of-insulating-india-from-global-energy-shock\/articleshow\/130989725.cms\" style=\"\">losses<\/a> of up to INR 1.7 bn (USD 20 mn) per day, with total losses past INR 1 tn (USD 12 bn) over 10 weeks. Government duty cuts of about INR 14 bn (USD 170 mn) a month have softened the impact, but with global peers raising prices, a pass-through to consumers looks less like an if and more like a when.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The trade-off is brutal. <\/strong>Pass prices through and inflation spikes, potentially dampening remittance-linked consumption across the Gulf corridor. Hold the line and the INR keeps absorbing the shock, repricing every non-oil import from the Gulf \u2014 petrochemicals, plastics, fertilizers \u2014 and pushing refiners toward cheaper Russian crude or domestic alternatives.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">What's next<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>RBI FX reserve data on Friday will show how hard the central bank has been defending the currency.<\/strong> Watch for sourcing shifts at Reliance, Indian Oil, and BPCL, as well as for any signal on pump prices. The ministerial cadence is its own tell \u2014 more meetings, more pressure.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>SOUND SMART- <\/strong>The structural deadlock is unchanged. Until Iran drops its demand for sovereignty over the Strait of Hormuz \u2014 or Washington moves on it, which looks unlikely \u2014 there is no path to a durable agreement and no sustained relief for oil markets.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>(** <\/strong><strong>Tap<\/strong><strong> or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.) <\/p>\n","protected":false},"excerpt":{"rendered":"<p>India's prime minister is asking citizens to use less fuel, buy less gold, and defer overseas travel for a year \u2014 a Covid-era appeal that signals just how much pressure the Iran crisis is putting on the Gulf-India corridor. With Brent at USD 106 \/ bbl, the INR at a record low of 95.17, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":89510,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2723],"tags":[2402,2731,2659,2615,2722],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-89509","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-enterpriseam-india","tag-india-focus","tag-india-gcc-corridor","tag-rbi","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"f98954a9-6383-4107-8b3d-6acbbaf1af07","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/5\/546.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Modi's ration call","related_issue":[89505],"teaser":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>India is publicly saying it can no longer absorb the crude hike - MENA India Corridors<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/mena-india\/2026\/05\/11\/india-is-publicly-saying-it-can-no-longer-absorb-the-crude-hike\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"India is publicly saying it can no longer absorb the crude hike\" \/>\n<meta property=\"og:description\" content=\"India&#039;s prime minister is asking citizens to use less fuel, buy less gold, and defer overseas travel for a year \u2014 a Covid-era appeal that signals just how much pressure the Iran crisis is putting on the Gulf-India corridor. 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