Following the collapse of peace talks between the US and Iran, India's oil marketing companies are bracing for increased pressure on profitability as energy prices are set to surge. Analysts warn that the ongoing conflict in West Asia and uncertainties regarding the Strait of Hormuz will challenge energy supply for Indian firms. Currently, state-run oil marketing companies are facing steep under-recoveries of ₹24.40 per litre on petrol and ₹104.99 per litre on diesel. Despite crude prices exceeding $100 per barrel, these companies have kept fuel prices unchanged due to government interventions, including a temporary excise duty cut of ₹10 per litre. However, this situation is becoming unsustainable as procurement costs have escalated sharply since the conflict began on February 28. In response to rising global rates, the Indian government has more than doubled export duties on diesel and aviation turbine fuel, raising the duty on diesel from ₹21.5 to ₹55.5 per litre. Amid these challenges, the government is prioritizing the safe passage of LPG tankers, as India continues to face a cooking gas shortage despite the successful transit of several vessels.