Oil Minister Murli Deora said he will review petrol and diesel prices in the next 15-20 days, TV channel NDTV Profit reported on Tuesday. India unexpectedly raised gasoline and diesel prices by as much as 10 percent on July 1, its first increase this year.

Indian state refiners, which sell petrol and diesel at state-set rates but buy crude oil at market rates, are seeking higher fuel prices as crude costs have surged nearly $10 a barrel since the start of October.

NDTV Profit reported the minister's remarks only in a brief news flash and gave no further details. The oil ministry in New Delhi could not immediately be reached to comment.

U.S. crude for November delivery touched $80.05 a barrel, the highest since Oct. 14 last year. The dollar hit a 14-month low against a basket of currencies on Tuesday. A weak dollar makes dollar-denominated commodities such as oil cheaper for holders of other currencies.

Annual inflation rose 0.92 percent in the first week of October, below a Reuters median forecast of 1.46 percent, but picking up from the previous week's 0.7 percent. The annual change in the wholesale price index was negative for the 13 weeks up to end of August due to a sharp rise in fuel and commodity prices a year earlier, a factor which started receding in mid-September.

"Any increase in oil price will add to headline inflation, but it should not have any immediate impact on monetary policy," The Reserve Bank of India (RBI) reviews policy on Oct. 27 and is widely expected to hold its key rates steady. It is seen to begin gradually exiting its year-old accommodative stance starting in early 2010.

But, analysts say a fuel price increase may compel the central bank to act earlier than expected. "I think there has been a case of monetary action by year end or early next year as the inflation pressures are building up due to increase in food prices," said HDFC Bank's Barua.