"The petroleum minister will hold discussions with the prime minister. It may be discussed at the Cabinet meeting tomorrow," a government official said.

In August, the government cut taxes on fuels to soften the impact of soaring global prices.

The average price of India's oil imports was $41.51 per barrel on Monday, an Indian Oil Corporation executive said. "This price is lower than the average price of the Indian basket of crudes in the middle of August," he added.

The finance ministry has set up a high-level committee to look into the duty structure of petroleum products. The committee, headed by Chief Economic Adviser Ashok Lahiri has been set up in response to widespread concerns over soaring global crude oil prices.

Confirming the decision, Gautam Ray, joint secretary, Central Board of Excise and Customs, who is also a member of the committee, said, "The terms of reference on all petroleum products are being looked into." It will assess the impact of tariff changes on various players, including consumers and oil companies.

The seven-member committee has been asked to submit its report by November.

The other members are oil ministry joint secretary Prabhu Das, DEA consultant Ajay Shah, DEA advisor GR Reddy, oil ministry director S Vijaya Raghavan and DEA additional economic advisor KL Prasad.