Manmohan Singh rules out immediate cut in fuel prices

Onboard Air India One, Nov.11 : The Prime Minister, Dr. Manmohan Singh, on Tuesday, ruled out any immediate cut of fuel prices, saying that such a measure could not be considered till oil PSUs stop making losses.

Speaking to the media team accompanying him on his return home from official visits to Oman and Qatar, Dr. Singh said that there were "limits to which government can go on subsidising".

"When we see that the Indian oil companies are able to sustain a reduction, that will be the right (time for such a) decision," Singh told reporters.

Oil companies have started making profit on sale of petrol but they continue to incur losses on diesel sales.

"Oil companies have to bear a very heavy burden (and) there are limits to which government can go on subsidising," he said.

Indian Oil, Bharat Petroleum and Hindustan Petroleum, besides domestic LPG and kerosene are expected to lose Rs 128,135 crore in revenues in fiscal 2008-09. By Pankaj Chaudhry

ANI