New Delhi: With petrol and diesel prices scaling a new high on Tuesday as benchmark crude rose to $75(approximately Rs 5,000)a barrel, its highest since November 2014, there’s no respite in sight for fuel consumers as pump prices remain on a record-breaking spree as crude clambers towards $80 (approximately Rs 5,314) a barrel-mark in a market edgy over US bailing on Iran nuclear deal, outages in Venezuela and uptick in demand.
In Delhi, the sample market considered by the government, petrol price rose to Rs 74.63 a litre, the highest since September 2013. Diesel sold at Rs 65.93 a litre.

Several factors indicate oil prices are going to remain on fire. The rupee’s fall to one-year low against the Greenback will only amplify the impact unless the Centre cuts excise duty, which it had raised by Rs 11.77 per litre on petrol and Rs 13.47 on diesel when crude went on a free fall between November 2014 and January 2016.
Sanctions on Iran is the biggest trigger for sending crude north. Restrictions on the third largest oil producer in Opec — the cartel of 14 oil exporting countries accounting for 40% of global supplies — will squeeze supply when inventories are sliding due to production cut and outages in Venezuela but demand, as the International Energy Agency says, is growing faster than previously.
While the US shale industry can still flood the market to calm oil prices, there’s another American factor — the summer driving season — that could weigh on fuel consumers in India. Petrol and diesel prices in India are linked to their rates in trading hubs and not directly to crude, which is a component of the overall pricing. Product trading hubs swing according to demand and supply position.