TEMPO.CO, Jakarta - At a roadside eatery outside Delhi, India, Ramesh Verma has stopped checking the price of cooking gas every morning. The numbers only make him anxious now. At the same time, his business is starting to slow down as customers cut back on small, regular expenses like tea and snacks.
The commercial gas cylinder that runs his makeshift kitchen has jumped in price from around 2,078 rupees to 3,071 ($21.7 to $32.1) in just three months — a nearly 48% increase that is steadily erasing the narrow margins on which his business survives.
"I cannot charge truck drivers and laborers more per plate," Verma told DW, wiping down steel tables after the lunch rush. "If prices go up too much, they stop eating here. So, I absorb the loss 'til I can't."
How Narendra Modi Has Responded to Iran War Fallout
For years, wars in the Middle East felt distant to most Indians, something seen on television but rarely affecting their lives.
That has changed with the Iran war pushing up global energy prices. Last weekend, Prime Minister Narendra Modi publicly appealed to citizens to embrace voluntary austerity to shield India's economy from the fallout of the Iran conflict in West Asia.
Speaking at a rally in the city of Secunderabad, Modi urged Indians to cut fuel consumption, work from home, postpone foreign travel, avoid unnecessary imports and delay gold purchases. The message was framed as a patriotic responsibility during a period of global instability.
"The West Asia crisis is one of the worst in the decade; just as we overcame the COVID-19 pandemic, we will come out of this also," he said.
His critics, however, were quick to point out that Modi made his appeal just days after the end of a bruising state election cycle. The campaign was dominated by expensive political roadshows, helicopter travel and mass rallies, with the opposition accusing the government of delaying difficult economic messaging until voting had ended.
"I had said it — the heat of inflation would come after the elections," opposition leader Rahul Gandhi of the Indian National Congress posted on X.
Beyond the political arena, ordinary Indians are wondering if Modi's appeal is just a plea for short-term solidarity during a global crisis or the first official warning of enduring hardships ahead.
How Modi's Austerity Measures Affect Indians
As of mid-May, India has imposed no mandatory restrictions and no rationing orders. Gasoline and diesel prices have not yet been raised despite crude prices soaring globally.
But state-run oil distributors are losing approximately $105 million (€97 million) every day, according to government figures, as they absorb rising costs due to the Strait of Hormuz disruption. Liquefied Petroleum Gas (LPG) prices have already climbed sharply for consumers and businesses in India.
In Lucknow's wholesale vegetable market, trader Ranjit Prasad says customers are buying smaller quantities and bargaining harder.
"People are nervous," Prasad told DW. "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 it highly exposed to turmoil abroad. As oil prices surged, India's import bill widened sharply, while its foreign exchange reserves fell by nearly $38 billion in two months. India also imports hundreds of tons of gold annually, which also tends to weaken its currency.
The government's economic concerns are straightforward: Higher oil prices make imports more costly, weaken the currency and push up inflation across the economy — from rising costs of transport and fertilizers to cooking gas and food.
‘Nobody Needed a Speech to Tell Us Things Are Becoming Expensive'
In southern Chennai, auto-rickshaw driver Murugesan Kumar says passengers have started walking 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, Sunita Deshpande, a homemaker, quietly canceled her summer plans for a vacation 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," Deshpande told DW. "The economy already told us."
Much of India depends on LPG cylinders for cooking. The sharp rise in natural gas prices is affecting restaurants, tea stalls and small businesses around the country.
Economists say those increases will inevitably flow into food prices and household spending.
"Commercial LPG prices affect the entire informal consumption chain — eateries, transport-linked services and small businesses," economist Lekha Chakraborty of the National Institute of Public Finance and Policy told DW.
"When energy costs rise sharply, the burden does not remain confined to fuel alone. It transmits into retail prices, compresses household consumption and disproportionately affects lower-income groups who already spend a larger share of income on essentials," she said.
BJP Fires Back at Claims of Losing Control
The opposition has seized on the growing anxiety to accuse the government of asking citizens to bear the burden of economic mismanagement.
The regional Samajwadi Party president, Akhilesh Yadav, hit out at Modi and said his appeal was an "admission of failure."
"It appears the BJP government has completely lost control. The dollar is skyrocketing, and the Indian rupee has plummeted. The BJP should be appealing to its corrupt allies to stop buying gold, not the public," said Yadav.
The ruling Bharatiya Janata Party (BJP) has rejected those accusations, arguing the crisis is external and global rather than policy-driven. Party leaders have described restraint and reduced consumption as acts of national solidarity necessary to shield the economy from deeper shocks.
"There is no panic. This is about preparedness and collective responsibility in a difficult international environment," BJP spokesperson Tom Vadakkan told DW.
A Lifetime of Poverty
At the moment, key risks seem to be as much psychological as economic. India is not facing shortages, rationing or mandatory austerity — but the combination of rising prices, currency pressure, falling remittances from abroad and official warnings has begun creating a broader sense of insecurity among ordinary people.
At his eatery, Verma counts the day's earnings and wonders how much longer he can keep meals affordable while his own costs climb relentlessly upward.
He has never travelled abroad. He does not buy gold. He already conserves fuel because he cannot afford waste.
"I don't need the government to teach me austerity" said Verma. "People like us have lived carefully our whole lives. The fear is that life is about to become even harder."
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