UPDATE 1-India says rising oil prices a cause for concern

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NEW DELHI, June 15 (Reuters) - Rising oil prices are "a cause for concern" for India and the government is exploring options, including an increase in retail prices to minimise its impact, Oil Minister Murli Deora told reporters on Monday.

Imports contribute over 70 percent of India's oil consumption. Oil prices, which fell from a peak near $147 a barrel last July to the low $30s late last year, have been buoyed recently by hopes of economic and demand recovery. By 0948 GMT, U.S. crude CLc1 was trading at $70.92 a barrel while London Brent crude LCOc1 for July, which expires later in the day, dipped $0.93 to $69.99.

"We are seriously concerned about that crude oil prices are going up in the international market," Deora said, adding this could be met by raising prices, issuing bonds and also the possibility of contributions from oil producers.

"These are the issues which finance ministry will decide," he said.

Deora said his ministry had also sought seven-year tax holiday for natural gas production. (Reporting By Nidhi Verma and Manoj Kumar; Edited by Ranjit Gangadharan)