New Delhi, May 15 -- After a gap of more than four years, fuel prices were raised across India on Friday, with petrol and diesel becoming costlier by Rs.3 per litre and CNG prices increasing by Rs.2 per kg in Delhi and Mumbai.

The fuel price hikes are aimed at offsetting losses caused by soaring crude oil prices. However, the bigger concern now is their cascading impact on retail inflation in the coming months.

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

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 ...