The decision is expected to augment the earlier measures taken by the government to reduce the prices of edible oils in the domestic market.
Select edible oils prices extended gains for the second straight week at the wholesale oil and oilseeds market on persistent buying by vanaspati millers, supported by strong demand from retailers against tight supplies.
Castor oil in the non-edible section also advanced on increased offtake by consuming industries.
Traders said increased buying by vanaspati millers to meet surging demand from retailers against tight stocks position on restricted supplies from producing regions mainly kept select edible oil prices higher.
A firm trend in overseas markets also buoyed the sentiment, they said.
In the national capital, groundnut mill delivery (Gujarat) oil advanced by Rs 200 to Rs 9,100 per quintal.
Mustard expeller (Dadri) and sesame mill delivery also moved up by Rs 50 and Rs 100 to Rs 8,000 and Rs 8,500 per quintal respectively.
Tracking a firm trend overseas, soyabean refined mill delivery (Indore) and soyabean degum (Kandla) too ended higher by Rs 100 each to Rs 7,500 and Rs 7,100 per quintal respectively.
However, palmolein (RBD) and palmolein (Kandla) oils after moving between gains and losses on alternate bouts of buying or selling and settled around previous levels of Rs 6,450 and Rs 6,500 per quinal respectively.
In the non-edible section, castor oil finished higher by Rs 100 to to Rs 8,700-8,800 per quintal.