India's fuel price surge sparks inflation fears. Petrol and diesel prices jumped up to Rs 3 per litre on Friday, prompting economists to warn of widespread economic ripple effects. The fuel hike could add 10 to 25 basis points to headline inflation, with the biggest impact expected in May and June consumer price data. Road freight charges are likely to rise 2.5 to 3 percent as transporters face mounting costs from diesel, tolls, tyres and maintenance. Diesel represents 50 to 55 percent of truck operating costs, making this increase particularly challenging for the logistics sector. Multiple financial institutions have already revised inflation forecasts upward, with some predicting full-year inflation could average around 4.9 percent.
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