India is experiencing a more severe impact from $100 per barrel oil prices compared to previous instances, primarily due to the interplay of dollar-denominated oil and exchange rate dynamics.

The International Monetary Fund is developing scenarios for countries that may require financial support due to the prolonged Middle East conflict. India has cut special excise duties on petrol and diesel, while Pakistani provinces are seeking to avoid the burden of fuel subsidies, favoring passing global oil prices to consumers and proposing targeted subsidies.

Analysts at Macquarie have warned that oil prices could surge to a record $200 per barrel if the ongoing conflict in the Middle East continues through the entire second quarter.