Reserve Bank of India Governor Sanjay Malhotra warned that if the conflict in the Middle East continues, India may have to increase retail petrol and diesel prices. The ongoing closure of the Strait of Hormuz, a critical energy passage, has disrupted India's energy imports, leading to rising crude oil prices and inflationary pressures. Malhotra noted that state-run oil companies have been absorbing these higher costs, but this cannot continue indefinitely. He emphasized the need for fiscal coordination, stating, 'if the supply shock is as big as it is,' the government will need to act. Prime Minister Narendra Modi has also called on citizens to voluntarily reduce fuel consumption to help preserve the country’s foreign exchange reserves. The International Monetary Fund has suggested that India may need to pass on higher crude prices to consumers, while concerns remain about how long oil marketing companies can sustain losses. The RBI is monitoring inflation, which rose to 3.48% in April, and is prepared to adjust its monetary policy as needed, with the next meeting scheduled for June 5.