Prime Minister Narendra Modi on Friday strongly denied reports claiming that the Centre was planning to impose a “tax” or “surcharge” on foreign travel due to rising crude oil prices. The speculation emerged at a time when India is facing economic pressure because of the ongoing conflict in West Asia and the sharp increase in global oil prices.

The reports suggested that the government was considering a temporary levy on overseas travel to manage growing fiscal pressure caused by expensive crude imports. A report by CNBC-TV18 claimed that discussions were taking place within the government regarding an additional charge on international travel. However, Modi quickly rejected the claim and called it completely false.

In a direct response on X, the prime minister said, “This is totally false. Not an iota of truth in this. There is no question of putting such restrictions on foreign travel. We remain committed to improving ‘Ease of Doing Business’ and ‘Ease of Living’ for our people.”

His statement ended speculation over possible restrictions or added charges on international travel. Soon after Modi’s clarification, CNBC-TV18 withdrew its report and admitted the information was incorrect. In a post on X, the media outlet said, “Our story on government considering tax/cess on foreign travel is not accurate. We withdraw the story and regret the error.”

The controversy surfaced on the same day fuel prices in India were increased for the first time in more than four years. Petrol and diesel prices were revised after a major rise in global crude oil prices triggered by the ongoing US-Iran conflict. India imports more than 85 per cent of its crude oil requirement, making the country highly dependent on global energy markets. Any rise in international crude prices directly impacts India’s import bill and domestic fuel prices.

The issue gained more attention because Modi had recently appealed to citizens to reduce unnecessary expenses and save fuel in view of the global crisis. Addressing the public on Sunday, the prime minister urged people to use fuel carefully and avoid wasteful spending to help protect the economy.

“We have to save foreign exchange by any means,” he said while referring to the economic impact of the conflict in West Asia. He also pointed out that petrol and fertiliser prices had increased sharply because of the ongoing tensions in the region.

Modi said disruptions in global supply chains had created fresh challenges despite the government’s efforts to manage the situation. “That's why, during a global crisis, keeping the country above all else, we have to take resolutions,” he added.

The prime minister also encouraged people to adopt some of the habits developed during the Covid-19 pandemic. He said virtual meetings, video conferencing and work-from-home practices had become common during that period and could again help reduce fuel consumption and unnecessary travel.

“We got into work-from-home, virtual meetings, video conferencing, and many other methods during Covid-19. We got habituated to them. The need of the hour is to resume those methods,” Modi said.

Apart from reducing fuel usage, Modi also appealed to citizens to cut down edible oil consumption and reduce dependence on chemical fertilisers. He stressed the importance of promoting natural farming and using Swadeshi products to save foreign exchange and strengthen self-reliance.

The government’s clarification on the travel tax issue has brought relief to travellers and the tourism industry, which had become concerned over the possibility of additional financial burden on international travel. While economic pressure due to rising oil prices remains a concern, the Centre has made it clear that no such proposal related to taxing foreign travel is under consideration.