The finance ministry may cut the excise duty on petroleum products if international benchmark Brent crude prices continue to rule over $34-35 a barrel.
Uncertainty over a war in the Persian Gulf has led to a sharp rise in the average Brent prices to $33.57 a barrel in March, compared to around $23.48 a barrel in 2001-02.
Revenue department officials said a decision would be taken in the next few days.