India has recently experienced its first fuel price increase in four years, with diesel and gasoline prices rising by ₹3 (approximately $0.03) per liter due to the ongoing conflict in the Persian Gulf. Despite this modest increase, analysts suggest that further hikes of 2-4 rupees are likely if crude oil prices remain above $100 per barrel. State-owned refiners have indicated that a more substantial increase of ₹15 to ₹20 per liter is necessary to address current market conditions. The Indian government has maintained a freeze on fuel prices since March 2024, aiming to protect consumers while simultaneously straining refiners' profit margins, leading to daily losses of ₹10 billion. In response to the crisis, Prime Minister Narendra Modi has called on citizens to reduce fuel consumption through remote work and public transport, while Delhi's local government has implemented measures to ease congestion and conserve fuel. The situation reflects a broader challenge faced by governments worldwide as they navigate the economic repercussions of rising oil prices.