New Delhi, March 20 -- Oil marketing companies (OMCs) in India may have to absorb higher crude oil import costs as raising petrol and diesel prices remains difficult amid negative public sentiment due to LPG shortages, according to a report by Kotak Institutional Equities.

The report noted that the ongoing West Asia crisis and disruption in the Strait of Hormuz have increased risks to crude oil prices in FY2027.

According to the report, with no retail pricing freedom, OMCs will be required to absorb higher crude oil costs along with increased freight and insurance expenses.

It stated, "The negative public sentiment amid LPG shortages makes large petrol/diesel price hikes very difficult. OMCs have benefited from elevated marketing margi...