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Oil price shock fuels inflation worries and weakens demand for Indian government bonds
Economy
Published on 11 May 2026
Modi asks Indians to cut fuel and cooking oil
Oil-led inflation fears are denting appetite for Indian government bonds as investors anticipate higher price pressures and potential rate adjustments. Separately, Prime Minister Narendra Modi urged households to conserve fuel, curb non-essential travel, reduce cooking oil use, and limit fertilizer consumption, as global energy prices strain India’s foreign exchange reserves.
- Oil-driven inflation fears are weighing on bond demand
- Rising global energy costs pressure India’s foreign exchange reserves
- Modi urged fuel conservation and lower cooking oil consumption
- Limits on travel and fertilizer use aim to reduce imports
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times