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Petrol diesel price rise could ripple into inflation as freight and food costs surge say experts
Economy
Published on 16 May 2026
Diesel costs are expected to hit freight rates soon
India’s latest petrol and diesel price increase could fan out into wider retail inflation, economists warn. Analysts estimate fuel hikes may add 10–25 basis points to headline CPI, with effects starting to show in May data and strengthening in June. Transporters expect road freight charges to rise 2.5–3% as diesel, tolls, tyres, maintenance and compliance costs climb. The squeeze may worsen further as rising milk prices stack on top of fuel-driven pressure on household budgets and food delivery.
- Fuel prices were raised across India by up to Rs 3 per litre
- Fuel hikes may add 10 to 25 bps to headline CPI inflation
- Road freight charges could rise 2.5 to 3% in weeks ahead
- Diesel makes up nearly 50 to 55% of total truck operating costs
- May CPI impact may begin now, with fuller effect expected from June
- Petrol, diesel, and milk together could add about 42 bps to CPI
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times