NEW DELHI - India increased fuel prices by 3 rupees ($0.03) per liter on Friday, as officials sought to recover from mounting losses tied to elevated international oil rates.

In the capital, gasoline now costs 97.77 rupees ($1.17) per liter, with diesel reaching 90.67 rupees ($1.09) per liter.

Dependent on imports for roughly 90% of its oil needs, India grapples with soaring energy costs and supply issues stemming from the Iran conflict and the Strait of Hormuz blockade. Until recently, the nation held off on retail price hikes despite crude oil surges, positioning it among the few large economies slow to shift costs to buyers.

The hikes followed soon after Prime Minister Narendra Modi called for voluntary cutbacks among citizens.

Speaking Sunday, Modi encouraged remote work when feasible, fewer overseas trips, and less gold buying. He portrayed fuel savings and forex conservation as "patriotism," while pushing public transit, ride-sharing, and moderated fertilizer use.

Opposition figures noted Modi's message arrived just after pivotal state elections ended, pointing out that fuel rates stayed steady through the voting period.

Earlier in the week, import tariffs on gold and silver rose to 15% to discourage purchases that sap foreign reserves.

The rupee has plunged to historic lows lately, battered by pricier oil imports and dwindling forex holdings.

Meantime, New Delhi has pioneered austerity steps as the first state to act.

Capital authorities on Thursday introduced fuel-reduction initiatives, mandating work-from-home for select public servants. Chief Minister Rekha Gupta described the 90-day effort as targeting lower government fuel consumption and nudging residents toward buses over personal cars.

The initiative requires remote-suitable staff to telecommute two days weekly, with private businesses asked to join voluntarily.

The country has sped up ethanol mixing in gasoline to slash oil import reliance.

Nearly all stations offer 20% ethanol-blended fuel, and officials plan to promote 85% - or full 100% - ethanol fuels for appropriate vehicles.

Analysts warn that biofuel expansion offers protection against worldwide energy volatility but risks overtaxing scarce groundwater, diverting farmland from food production, and damaging engines in aging cars.

AP journalist Sibi Arasu in Bengaluru, India, contributed to this report.