India, June 3 -- Rising petrol and diesel prices are poised to add fresh inflationary pressures to India's economy, with higher transport and manufacturing costs expected to feed through to consumer prices in the coming months, Crisil said in a report on Tuesday.

Petrol and diesel prices have increased by about Rs 7.5 per litre since May 15, and further increases remain likely if global crude oil prices stay elevated.

"With oil marketing companies gradually paring their losses (or under-recoveries), cumulative hikes could move closer to Rs 10 per litre in the near term," the rating agency said.

"The broader effect will reverberate across the economy through higher transport costs, pushing up both food and core inflation."

The direct i...