The decision was taken after chief Economic Advisor Kaushik Basu told the media that India would see important reforms in the next six months.
"May be what can happen is a partial decontrol. This is not a very well defined term. There are different kinds of partial decontrol that you can have," said Basu.
"What we should ideally do is to have a small subsidy that is fixed per litre. This will partially shelter the consumer but will allow the rise and fall of global price to be mirrored in India. This is essential for market efficiency," he added.