The measures under consideration also reportedly include import curbs and restrictions on non-essential overseas spending

India is considering a series of measures, including a fuel price hike and restrictions on non-essential spending, to shield its foreign exchange reserves from soaring oil prices linked to the Iran war, Bloomberg reports.

Top officials in the Prime Minister's Office and Finance Ministry held discussions with the Reserve Bank of India on steps to cushion the damage from soaring oil prices, unnamed officialstoldthe agency.

A fuel price hike, one of the options reportedly being considered, would be the first to be implemented since the US-Israeli war against Iran began.

The suggested measures could also include curbs on the import of gold and consumer electronics, seen as non-essential items. The authorities are also mulling temporary restrictions on non-essential overseas spending, and other steps to support the rupee.

A final decision on the measures to be adopted has not been made, according to the agency's sources.

Earlier, Prime Minister Narendra Modi suggestedstepsincluding work-from-home and carpooling to save fuel, and urged Indians to shun foreign travel and gold purchases.

India is facing growing strain from rising oil import costs linked to the protracted war against Iran, with a mounting import bill weakening the rupee as dollar outflows intensify. The rupee is the worst performer among major Asian currencies, down 5.6% against the dollar this year.

India has revised its oil and gas regime by slashing the royalty burden on producers and offering new incentives for offshore and difficult-field exploration, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Monday.

The move is aimed at boosting domestic energy output by reducing costs for companies exploring difficult and capital-intensive oil and gas fields. New Delhi has cut the effectiveroyalty rateon onshore crude production from 16.66% to 10%, while offshore royalties have been reduced from 9.09% to 8%. Royalties on natural gas have been lowered from 10% to 8%, Mint reported.

India, the world's third-largest oil buyer, relies on imports for around 85% of its oil needs, making it vulnerable to rising energy prices and disruptions to supplies through the Strait of Hormuz.

Puri dismissedconcernson Tuesday about a shortage of fuel, but did not rule out a hike.

Speaking at a public event on Monday, Puri stated that India has sufficient energy reserves to manage short-term disruptions, with 60 days of oil, 60 days of LNG, and 45 days of LPG. He cautioned people not to misread the government's message regarding energy conservation - however, he did not rule out a price hike if the disruptions related to the Iran war continue.

(RT.com)