With no retail pricing freedom, oil marketing companies (OMCs) will have to absorb higher crude and freight and insurance costs. The negative public sentiment amid LPG shortages makes large petrol and diesel price hikes very difficult, Kotak Institutional Equities said on March 17. "OMCs have benefited from elevated marketing margins in the past few years. However, weak earnings are now set to erode the buffer created. Post-crisis, new capex for LPG storage is likely. Reiterate SELL on all OMCs," it said. Crude prices jumped after attacks on Iran’s South Pars gas field. Reports indicated retaliatory strikes by Iran, with Qatar later suggesting that Iranian missile attacks on the Ras Laffan Industrial City, its main gas facility, have caused significant damage, Reuters reported. Kotak noted that apart from higher crude benchmarks, OMCs’ costs will rise due to elevated crude premiums, higher freight expenses and a weak rupee.