Petrol and diesel prices continue to soar and touched another peak on May 29. Petrol was hiked by 16 paise to Rs 86.24 per litre in Mumbai.

This is the 16th straight hike in a row. Diesel prices on the other hand, were hiked by 15 paise to Rs 73.79 per litre in Mumbai. Petrol prices in Delhi were increased by 16 paise to Rs 78.43 per litre and diesel by 14 paise to Rs 69.31 per litre.

Since the dynamic pricing system resumed on May 14, petrol and diesel prices have risen by Rs 3.8 and Rs 3.38 respectively in the last 16 days in Delhi.

Petroleum Minister Dharmendra Pradhan had earlier said that the government will intervene to reduce prices.

Brent crude futures, the international benchmark for oil prices, traded at $75.45 a barrel on the ICE.

Union Minister Nitin Gadkari had said that subsidising petrol and diesel to bring down their retail prices will take money away from government’s social welfare schemes.

A possible drop in Venezuela's crude output after a disputed presidential election, potential US sanctions on the country as well as US' tough stance on Iran are the key price drivers.

OPEC may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far, OPEC and oil industry

Indian Oil (IOC), the country's top refiner, will turn to its traditional oil suppliers, mostly in the Middle East, if U.S. sanctions against Iran result in supply disruptions, its head of finance said.

IOC is Iran's biggest Indian oil client. The company meets about 70 percent of its oil needs through annual contracts deals, mainly with Middle Eastern producers.

IOC chairman Sanjiv Singh said the government had so far not directed refiners to cut imports from Iran.

(With inputs from Reuters)