The recent increase in petrol and diesel prices is expected to push up India’s retail inflation in the coming months, with economists warning that the impact may spread far beyond fuel stations and into everyday household expenses. Fuel prices across India were raised on Friday by up to Rs 3 per litre.
Analysts told the Times of India that the fuel price hike could add between 10 and 25 basis points (bps) to headline inflation, while transporters and industry groups say the rising cost of diesel, tolls, tyres and vehicle maintenance may soon force companies to raise prices across sectors.
