India has introduced strict restrictions on the use of all types of fuel, including diesel and petrol, as the country faces a severe economic crisis triggered by soaring global oil prices and rising import costs. According to a Bloomberg report, the government’s move aims to stabilize the situation as both trade and budget deficits have reached record levels.

Bloomberg noted that India, the world’s third-largest oil importer and consumer, relies on foreign sources for about 85 percent of its oil needs. Recent geopolitical tensions and disruptions in global energy supply have sharply increased India’s import expenses, prompting the government to impose new domestic fuel usage controls. Economists have warned that these restrictions could negatively affect transportation, industrial production, and agriculture, potentially slowing overall economic growth.

The report added that India’s growing import burden has significantly expanded its current account and fiscal deficits, putting pressure on the rupee. Policymakers are now urgently reassessing fiscal and monetary strategies to contain inflation and revive economic stability.