Why travel & tourism, aviation shares are seeing downturn today
What's the story
Shares of major oil marketing companies (OMCs), airlines, and travel-related firms have plummeted today. The decline comes after Prime Minister Narendra Modi urged citizens to conserve fuel and limit non-essential foreign travel in light of the ongoing West Asia conflict, and disruptions around the Strait of Hormuz. Firms like Hindustan Petroleum Corporation, Bharat Petroleum Corporation, Indian Oil Corporation, and InterGlobe Aviation were among those affected by the market downturn.
Fuel conservation
Fuel conservation critical amid geopolitical tensions, says PM Modi
During an event in Hyderabad, PM Modi appealed to the public to use petrol, diesel, and cooking gas judiciously. He called it the "need of the hour," given geopolitical tensions that could disrupt global energy supplies and India's import bill. The appeal comes as the Strait of Hormuz, a major global energy transit route, continues to face severe disruptions due to the ongoing conflict involving Iran, Israel and the United States.
Travel restrictions
Avoid non-essential foreign travel for next 1 year, urges PM
As part of a broader appeal for economic prudence during the crisis, PM Modi urged citizens to avoid overseas travel for tourism and weddings over the next year. He also encouraged people to promote domestic tourism instead. The suggestions come as part of India's long-term energy security strategy amid rising global crude prices and freight costs due to supply disruptions.
Price stability
Fuel prices in India remain unchanged despite global volatility
Despite the surge in global crude prices, retail fuel prices in India have remained unchanged. Petrol currently costs ₹94.77 per liter in Delhi, while diesel is priced at ₹87.67 per liter. A 14.2kg domestic LPG cylinder is retailing at ₹913 in the national capital, although prices vary across states due to local taxes.