New Delhi, May 19 -- State-run oil marketing companies (OMCs) may need to sharply raise petrol and diesel prices further if crude oil prices remain elevated amid continued disruptions in the Strait of Hormuz, according to a report by Kotak Securities.

The report said that despite a recent Rs 3 per litre increase in retail fuel prices, under-recoveries for refiners are still significant and could necessitate further price revisions under multiple pricing scenarios.

"After a gap of more than four years (last hike: April 2022), OMCs implemented a modest ~Rs3/liter increase in petrol and diesel prices, starting from May 15," the report noted. However, it added that "under-recoveries likely persist at Rs8-9 bn/day, indicating further price h...