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Brent crude is sitting at about $107 per barrel, which puts pressure on everyone.
Right now, the government and state-run oil companies are absorbing part of these extra costs (thanks to earlier tax cuts), but Sanjay Malhotra warns they can't keep this up forever.
If prices stay high, we could see fuel hikes ahead.
The RBI is watching closely, especially since energy costs threaten its growth and inflation projections for the current financial year.

The repo rate remains steady at 5.25%.
Sanjay Malhotra emphasized the need for teamwork between fiscal policies and monetary moves during tough times like these.
The RBI will review its next steps on June 5, keeping an eye on how things unfold.