Fuel price hike on cards? Centre considering emergency measures to save forex amid Middle East crisis, says report

NEW DELHI: The central government is weighing emergency measures to bolster its foreign-exchange reserves amid the economic fallout from the US-Israel-Iran war, with officials considering steps such as raising fuel prices and restricting non-essential imports, including gold and electronic goods, Bloomberg reported citing people familiar with the matter.The report said that officials from the Prime Minister’s Office (PMO) and the finance ministry held consultations with the Reserve Bank of India (RBI) over a range of possible measures to contain the economic impact of surging oil prices, according to people familiar with the matter. Among the proposals being considered is an increase in fuel prices.However, no final decision has yet been taken on the proposed emergency steps, Bloomberg reported citing sources. Moreover, government could consider steps to limit the inflow of gold and consumer electronics, according to sources, the report said.Prime Minister Narendra Modi has urged the citizens twice in the past 24 hours to restrict consumption of fuel, limit foreign travel, prioritise work-from-home (WFH) and buy less gold and non-essential goods. However, no official announcement on any specific measures have been made yet.PM Modi even invoked Covid-19, saying that if India could overcome "the biggest crisis of this century", then we "will surely get through this", terming the Middle East crisis "one of the major crises of this decade.""Over the past few years, the world has been continuously passing through unstable circumstances. First, the crisis of Covid, then global economic challenges, and now the rising tensions in West Asia. The impact of all these situations is continuously falling on the entire world, and India is not untouched by it either. If the Covid pandemic was the biggest crisis of this century, then the circumstances created by the war in West Asia are one of the major crises of this decade. When we together overcame the challenge of Covid, we will surely get through this crisis as well. The government is also continuously making efforts to ensure that its impact on the people of the country is minimal," he said.The proposed measures are aimed at cushioning the economy from rising energy costs and mounting pressure on the rupee and forex reserves.