"We are taking increase in fuel prices very seriously... oil prices have increased according to a set formula. We are working on the situation at the highest level. Our people in the government will come up with a solution in three-four days," Shah told reporters here.
"Tomorrow (Wednesday), Union Petroleum Minister (Dharmendra Pradhan) will meet officials of the oil companies on the matter," he added.
The Minister had told reporters on Monday that the issue is under consideration of the government.
"Various alternatives are being looked into," Pradhan said, adding that he would "work out something soon".
With a rise in international crude oil prices, Indian consumers are also reeling under a corresponding increase in petrol and diesel prices, with major cities like Mumbai and Delhi witnessing a record high.
The price of petrol in Delhi on Tuesday under the dynamic pricing regime touched a record Rs 76.87 per litre, while in Mumbai it was Rs 84.70.