Indian Oil Marketing Companies (OMCs) have raised petrol and diesel prices by ₹3 per litre due to substantial daily losses amid the ongoing Iran conflict, which has disrupted global supply chains. This increase is expected to intensify inflationary pressures within India, particularly affecting transportation and logistics costs. Alongside this, the price of Compressed Natural Gas (CNG) has also risen by ₹2 per kg, leading to new rates of ₹84 in Mumbai and ₹79.09 in Delhi. Economists warn that the hike could push retail inflation closer to 5% in the coming months, with the All India Transporters' Welfare Association projecting a 3% rise in freight costs. The recent spike in fuel prices has already contributed to an increase in retail inflation to 3.48% in April and a significant rise in the Wholesale Price Index (WPI) to 8.3%. The Reserve Bank of India (RBI) may face challenges in managing inflation expectations, as the hike complicates its monetary policy strategy, with analysts suggesting that further price increases could occur if crude prices remain high. The government's balancing act between managing fiscal pressures and ensuring the viability of fuel retailers amid global uncertainties continues to be a critical focus.