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Fuel price hike could lift inflation by 20 bps experts warn after ₹3 petrol diesel rise
Economy
Published on 15 May 2026
Petrol and diesel changes may ripple into second round prices
Retail inflation in India may rise by 15–20 basis points in the coming months after a Friday fuel price hike of ₹3 per litre for petrol and diesel, analysts say. With petrol and diesel carrying 4.8% weight in the CPI, a 3–5% fuel increase could add 15–25 bps directly, plus 10–15 bps from transport, logistics and agricultural input costs. Effects will spread across May and June inflation, with broader impacts visible over 3–4 months.
- Analysts expect retail inflation to climb 15–20 bps after the fuel hike
- Petrol and diesel together make up 4.8% of the CPI basket
- ₹3 per litre petrol and diesel increase is the first in four years
- Direct fuel impact: about 15 bps; indirect second-round effects: 10–15 bps
- Brent crude rose above $100 a barrel from $73 since Feb 28 amid West Asia conflict
- May inflation estimates vary: ICRA 4.3%, Ind-Ra 3.8%, IDFC First 3.9%
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times