The government-appointed committee has proposed that diesel prices should be decontrolled at the retail level.
It also proposed the government to free petrol prices at both refinery and retail levels.
According to the panel report, if the government accepts these recommendations, the price of kerosene may go up by Rs 6 a litre, and each cooking gas cylinder would cost Rs 100 more.
The price of petrol could rise by about Rs 5 a litre and that of diesel could go up by about Rs 3.
The panel hoped that the fuel pricing policy will address government's fiscal problems.
The oil secretary said that the Prime Minister want the Parikh panel report to be passed soon.
Oil Minister Murli Deora said that the Parikh panel report would be put before the Cabinet in a week.