The government is considering a 3-rupee to 5-rupee hike in the price of diesel, which accounts for more than 40 percent of fuel use, government officials said last week, as the country looks to cut import costs by nearly $20 billion to trim a record current account deficit.
In January, India allowed fuel retailers to raise the price of subsidised diesel every month and asked bulk buyers to pay market rates.
Media has raised the issues that new pricing to benefit Reliance Industries.
Both the countries have increased prices of gas recently.
Brent crude was trading at $105 a barrel on Friday while US oil was at $96.75.
Parliamentary panel seeks changes in crude import norms.
The economy, which grew at 6.5 per cent in the year ended March 2012, is expected to grow 5.7 per cent to 5.9 per cent this fiscal year, the slowest since 2002/03.
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