I agree that the game is a bit difficult in its current form. Because it was made for a jam, we did not have too much time for balance testing unfortunately! Originally you were going to have to choose between regaining oil or sanity in between levels with no pickups to be found on the floors. Thankfully we decided against that!
Throwing the lamp was meant to be a high risk and high reward as its the only way to kill multiple enemies in one action. Getting blocked by enemies is definitely a frustrating way to die. The pathfinding was a bit of a rush job since our programmer had to write an A* algorithm from scratch which ended up being more trouble than we anticipated.
Thank you for playing and giving your feedback!