BS EDIT: Beyond Appeals: Prices Must Drive Behaviour Change

By Business StandardPublished On May 12, 2026

A Growing Energy Shock

The Strait of Hormuz crisis threatens inflation, growth, and India’s macroeconomic stability

The Government’s Appeal

Citizens have been urged to conserve fuel, cut imports, and reduce foreign-exchange pressure

Why Prices Matter More

Allowing fuel prices to adjust can naturally encourage lower consumption and efficiency

Political Constraints Persist

Concerns over inflation often delay price corrections, despite mounting fiscal costs

Managing the Broader Risks

A weaker rupee and stronger capital inflows can help ease pressure on the external account

Reforms Become Crucial

Sustained shocks demand faster reforms, better communication, and tougher policy choices