New Delhi, June 2 -- Rising petrol and diesel prices are likely to exert significant inflationary pressure on the Indian economy, with higher transportation and manufacturing costs expected to push up both food and core inflation in the coming months, according to a report by CRISIL.
The report noted that retail petrol and diesel prices have increased by around Rs 7.5 per litre since May 15, and further hikes remain possible if global crude oil prices stay elevated. With oil marketing companies gradually reducing their under-recoveries, cumulative fuel price increases could approach Rs 10 per litre in the near term.
According to CRISIL's estimates, a Rs 7.5-per-litre increase in fuel prices could directly add around 36 basis points (bps) ...