Dr. Arvind Panagariya, a prominent economist and Chairperson of the Finance Commission of India, has advised the Indian government to allow petrol prices to rise in response to the ongoing oil shortage linked to geopolitical tensions, particularly the blockade of the Strait of Hormuz. In an interview with NDTV, he emphasized the importance of using price instruments to manage shortages rather than implementing bureaucratic restrictions. He commended Prime Minister Narendra Modi's recent appeal to the public to conserve fuel through public transport and carpooling, viewing it as a wise initial measure. However, Panagariya believes that allowing petrol prices to adjust naturally would be more effective. He also suggested that a depreciation of the Indian rupee could help reduce import costs across the board, thereby improving the current account balance. Additionally, he noted that the United States is facing similar oil price increases, with gasoline prices rising from approximately $4 to nearly $6 per gallon, reflecting the interconnected nature of global oil markets. Panagariya remains optimistic about the potential for the US government to resolve the ongoing conflict in the Middle East, which is contributing to these oil supply issues.