In a notable shift from fuel price deregulation, India's state-owned oil marketing firms will pay refineries reduced rates for petrol, diesel, jet fuel (ATF), and kerosene to address mounting deficits caused by an internal freeze on retail prices. Effective from March 16, the new rates, which can be as much as ₹60 per litre below import costs, were established on March 26. This change is expected to severely impact independent refiners such as Mangalore Refinery and Chennai Petroleum, as they rely on market-linked refinery transfer prices (RTP) for income. With global crude oil prices surging from approximately $70 per barrel to over $100, domestic retail prices in India have remained unchanged, forcing oil marketing companies (OMCs) to absorb the financial strain. The revised RTP for diesel was reduced from ₹85,349 per kilolitre to ₹63,007, while ATF prices were cut from ₹127,486 to ₹76,923 per kilolitre. This discount model prevents refiners from fully passing on crude cost increases, potentially leading to tighter margins for standalone refiners dependent on OMCs for sales.