Indian oil marketing companies (OMCs) are facing severe financial losses, currently losing ₹1,600 crore (approximately $192 million USD) daily due to skyrocketing production costs. The recent increase in retail fuel prices by ₹2.83 per litre for petrol and diesel, and ₹2 per kilogram for compressed natural gas (CNG), is a response to these escalating costs driven by geopolitical tensions, particularly the ongoing conflict involving Iran. Despite these hikes, experts suggest that OMCs would need to raise prices by ₹28 to ₹33 per litre to fully cover their costs and eliminate losses. The situation has been exacerbated by a significant rise in crude oil prices, with benchmark Brent crude remaining above $100 per barrel, leading to a drastic increase in India’s crude basket cost from $69 per barrel to an average of $114.48 in April. The Indian government has attempted to alleviate some pressure on OMCs by reducing excise duties, but these measures have not translated into lower consumer prices. As the geopolitical situation continues to evolve, OMCs remain vulnerable to further losses, particularly if the conflict persists.