Prime Minister Manmohan Singh ruled out cutting prices of petrol and diesel until oil marketing companies stop making losses on fuel sales. The Indian Oil, Bharat Petroleum and Hindustan Petroleum currently make a profit of Rs 4.12 per litre on petrol but lose Rs 0.96 per litre on diesel. He added that there's a limit to how much the government can continue subsidising the OMCs.
“When we feel that the Indian oil companies are able to sustain a reduction, that will be the right decision. Even now, they have to bear a very heavy burden,” the Prime Minister said.
Commenting on the aviation sector, the Prime Minister also defended the move to give concessions to cash-strapped private airlines. He said the bailout was not to help the rich but to save jobs. “If the airlines close down, there will be considerable amount of unemployment, and we don't want unemployment to become more acute and more pronounced. So whatever the Indian industry needs by way of government support to maintain employment and its profitability, it is the government's duty to help,” he said.
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