Sources said Saudi Oil Minister Khalid A Al Falih, BP CEO Bob Dudley, Total head Patrick Fouyane, Reliance Industries Chairman Mukesh Ambani and Vedanta chief Anil Agarwal are expected to attend the meeting on Monday.
Diesel now costs Rs 75.46 per litre in Delhi - slightly higher than Rs 75.45 a litre price when the government announced the excise duty cut on October 4.
Highlighting India's significant position in the sector, Modi said oil prices had risen because the market is producer-driven and both the quantity and prices are determined by the oil-producing countries.
"We could have another (round of) unanticipated disruptions that we have seen in Nigeria, Libya and Venezuela".
It is expected that the discussion will be on investment in oil and gas exploration, emerging energy scenario, with ripples from U.S. sanctions on Iran and volatile oil prices threatening growth.
"To strengthen relations with India is a strategic priority of the Kingdom of Saudi Arabia", he said.
"We have invested tens of billions of dollars to build spare capacity of 2-3 million barrels per day over years", he added.
In Saudi Arabia, the potential slaying of a journalist within the Saudi embassy in Turkey is drawing fierce lashback from the global community, prompting threatening Tweets from US President Donald Trump, and Saudi Arabia has doubled down on their stance, threatening to allow the bottom to drop out on Saudi crude production and allowing crude prices to reach $100 per barrel if the US were to take any action.
Prices hit a four-year high of $86.74 a barrel earlier this month as the market grapples with the expected loss of Iranian exports due to U.S. sanctions.
Saudi Arabia has the capacity to produce 12 million bpd and is now producing 10.7 million bpd, Falih said, adding that production will rise further next month.
Indian Prime Minister Narendra Modi urged global oil suppliers on Monday to review payment terms in order to give relief to the country which is struggling with a weakening currency.
Last week, Pradhan said two state-owned oil refiners have booked import of 1.25 million tonne (MT) of crude oil from Iran in November.
On Monday, officials in the government and oil companies said Indian firms like International Olympic Committee have optional volumes built in their annual crude oil purchase contracts with suppliers like Saudi Arabia and Iraq that will be more than enough to make up for any shortfall in supplies from sanction-hit Iran.