India raises fuel prices to manage its trade deficit, pressured by foreign investor sell-offs due to crude oil dependence and geopolitical events, weakening the rupee. Policy uses higher fuel costs to dampen demand, with the burden shared by consumers, refiners, and the government. India is better positioned to absorb this energy shock due to prior strong growth and low inflation, despite potential economic impacts. Supply-side measures, like increased duties and reduced foreign travel, are also employed, with higher pump prices effectively enforcing lower energy consumption.