Despite a recent ₹3 per litre increase in petrol and diesel prices, state-run oil marketing companies (OMCs) in India are still incurring daily losses of about ₹500 crore. Prashant Vasisht, senior vice-president at ICRA, highlighted that the modest price hike offers limited relief as global crude oil prices have surged to around $107 per barrel due to geopolitical tensions in West Asia and concerns over supply disruptions. India, which relies on imports for over 85% of its crude oil needs, faces significant vulnerability to rising global prices and a depreciating rupee, which further escalates import costs. The recent price adjustments by OMCs such as Indian Oil Corporation and Bharat Petroleum Corporation Limited may not suffice if crude prices remain elevated. Analysts indicate that if these conditions persist, OMCs may need to reconsider retail fuel prices, which could lead to further increases in the coming weeks. Such hikes could exacerbate inflation and affect household budgets, particularly amidst ongoing food inflation concerns.