New Delhi, May 15 -- After more than four years, petrol and diesel prices were raised by Rs.3 per litre, or more than 3%, on Friday, while CNG prices also went up by Rs.2 per kg in Delhi and Mumbai. While the hikes aim to offset losses from soaring crude oil prices, the bigger concern now is their cascading impact on retail inflation in the coming months.

Madan Sabnavis, Chief Economist, Bank of Baroda, says, "Given the losses being incurred by oil marketing companies (OMCs), a rise in petrol and diesel prices was inevitable."

But, what remains unclear, however, is whether this is a one-time increase or the beginning of a series of hikes. "My assumption is that there could be another round of increases, as a Rs.3 per litre hike may not ...