New Delhi, June 2 -- The Reserve Bank of India (RBI) may look through the immediate supply-side impact of higher oil prices in its monetary policy, but the escalating fuel costs are increasing the risk of broader inflationary pressures across the economy, says a report by Crisil.

Retail petrol and diesel prices have increased by about Rs 7.5 per litre since May 15 and further hikes can be expected if crude prices remain elevated. "The direct upside to inflation linked to the Consumer Price Index (CPI) is estimated at ~36 basis points (bps) with a hike of Rs 7.5/litre in petrol and diesel prices, rising to ~48 bps if the retail fuel prices increase by Rs 10," the report said.

While the CPI inflation currently remains below RBI's 4% targe...