In a saucepan, add oil, shallots, garlic, basil, and dry oregano. Mix well. Cook until fragrant, about 1 to 2 minutes.
Add diced tomatoes, sugar, red chili, black pepper, and salt and it let it cook for 5 to 7 minutes.
Mash the tomatoes with potato masher until tomatoes are broken down or leave some chunky bits according to your preference. If you like a smoother sauce, use a blender or a blender stick and puree until the sauce is free of chunks, being careful that the hot sauce does not splatter and burn you.
Enjoy the sauce on pizza or pasta with the veggies of your choice.