MONEY
Petrol, gold, foreign travel: Why the PM has asked for curbs
1) PM Narendra Modi urged Indians to reduce fuel use, and work from home, during his speech in Hyderabad on Sunday (May 10).
Why?
India imports 90% of crude oil. Crude oil has mostly been over $100 per barrel since the Iran war.
2) PM Modi has asked Indians to avoid foreign travel for a year.
Why?
The Rupee has fallen to close to 95 per dollar. When you travel abroad you have to convert more Rupees to dollars. This affects the exchange rate further.
3) PM Modi has asked Indians to avoid buying gold for a year.
Why?
India is one of the largest importers of gold. 90% of gold consumed in India is imported. Gold prices have been touching record highs over the last few months.
What's in it for you?
- •FUEL PRICE HIKE IMMINENT? While the government has not increased fuel prices for consumers since the Iran war, oil marketing companies are bearing huge losses every day as global oil prices climb. Some analysts had predicted fuel price hike could come post the state elections.
- •WORK FROM HOME? PM Modi's directive for work from home was towards citizens and there is no official mandate yet to companies to incorporate this. So you will have to wait for directions from your HR on whether you can work from home.
- •AUSTERITY PHASE BEGINS? The Prime Minister's speech also talked about austerity by avoiding gold purchase and foreign travel for a year, and using Swadeshi goods over foreign brands.
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