New Delhi, May 16 -- The prices of petrol and diesel are expected to rise further, even by Rs.10 per litre, economists are warning.

India's state-run oil marketing companies (OMCs) - which account for nearly 90% of the domestic fuel retail market - raised petrol and diesel prices by over Rs.3 per litre each on Friday. The move came as crude prices continued to surge amid US-Iran tensions and peace negotiations to end the West Asia war remained in limbo.

The increase in prices of fuel, cooking gas and milk is expected to push retail inflation up by 0.42% in the coming months, economists cautioned.

Financial services company Emkay Global predicted that the price of petrol and diesel may increase to Rs.10 per litre in the near future for ...