Shares of oil marketing companies (OMCs) in India experienced a decline of up to 6% amid a spike in crude oil prices, which rose over 7% to reach $102.17 per barrel due to escalating tensions in West Asia. Bharat Petroleum Corporation (BPCL) shares fell 3.74%, Hindustan Petroleum Corporation (HPCL) dropped 4.2%, and Indian Oil Corporation (IOCL) decreased by 3.01%. The BSE Sensex, in contrast, rose 1.78% to 76,170.63. Analysts express concerns that the profitability of OMCs will face renewed pressure following unsuccessful peace talks between the US and Iran, which left key issues unresolved. This geopolitical uncertainty poses challenges for energy supply, particularly concerning the Strait of Hormuz. Currently, OMCs are facing significant under-recoveries of ₹24.40 (roughly $0.30 USD) per litre on petrol and ₹104.99 (approximately $1.27 USD) per litre on diesel, as they have not adjusted fuel prices in line with rising crude costs. In response, the Indian government has increased export duties on diesel and aviation turbine fuel, more than doubling the duty on diesel exports to ₹55.5 (about $0.67 USD) per litre from ₹21.5 (around $0.26 USD). Analysts suggest that the new windfall tax could benefit OMCs by allowing them to negotiate better terms with standalone refiners, potentially easing their financial burdens.