"We cannot allow the subsidy bill to rise any further," Singh appealed to the political parties to adopt a wider consensus on the pricing issue.
He said the government has not raised the price of kerosene in the past four years and LPG and diesel prices were "only marginally raised".
"Even petrol do not fully reflect the world trend...This situation cannot continue forever," he said.
Crude oil prices were trading at $127 per barrel in the global markets today.
Referring to high inflation rate, which has crossed 8 per cent mark, he said the government is focused on "reversing the recent surge in the headline inflation rate".
Wholesale price-based inflation for week ended May 17 stood at 8.1 per cent, against 7.82 per cent in the previous week.
"It has been our endeavor to tame inflationary expectations without hurting the rhythm of the growth process and also to protect the weaker sections against rising prices," he said.
Exuding confidence on the measures taken by the government, the Prime Minister said "mix policies we have adopted will yield results once the full impact of normal monsoon is felt".
