While the issue is not on the committee's agenda, it will likely be discussed, three officials said. The meeting of the Cabinet Committee on Political Affairs is due to take place at 6:30 pm local time (1300 GMT).

India subsidises the prices of diesel, cooking gas and kerosene to help rein in inflation and protect the poor, but the policy has fuelled a ballooning fiscal deficit.

India has been under mounting pressure to cut the subsidies but there has been a lack of political consensus on the sensitive issue.

A meeting of the full cabinet is scheduled for Friday.