The department said the sustained hikes in fuel prices over the past few months have placed a strain on consumers.
Diesel is being sold at Rs 71.15 in Delhi, Rs 74 in Kolkata, Rs 75.54 in Mumbai and Rs 75.19 in Chennai.
The opposition has also launched an attack on the BJP government over the rising fuel prices. The price of petrol increased by Rs 0.31 per litre while that of diesel was hiked by Rs 0.39 per litre.
It's necessary to bring global factors in line to curb the surge in prices, Pradhan added.
Domestic credit rating agency Icra said in a report on Monday that global oil prices have risen by about 10 per cent over the past two weeks on declining inventories and faster than anticipated decline in Iranian exports as the countdown to the enforcement of United States sanctions begins.
Production by the Organization of the Petroleum Exporting Countries rose 220,000 barrels per day (bpd) in August to a 2018 high of 32.79 million bpd, a Reuters survey showed. There is a pressure on oil prices due to a decrease in production. "You can then buy petrol paying a dollar", he said.
Iran, which is the second biggest oil exporter to India and the third-largest oil producer in the OPEC Group, is likely to plunge into crisis once the United States' sanctions come into effect on November 1.
There is no price increase for diesel or illuminating paraffin.
Meanwhile, Maharashtra transporters, burdened with diesel price hikes for a fortnight, have threatened to agitate and increase freight rates by 10-15% if there is no control or reduction in rates.
Roodt said he thinks the government has drawn on crude oil reserves that "had been hidden somewhere" or "they had a spare pot of cash somewhere in the ministry" to make the intervention possible. All these factors will be discussed.
Any rally in global crude oil price will impact India's oil import bill and trade deficit as every dollar increase in oil prices would impact import bill by around ₹10,700 crore on an annual basis.