On Board Air India One, March 1 (IANS) Prime Minister Manmohan Singh Monday candidly said that people would be upset with the rise in oil prices, but the country cannot 'persist with populist budgets'.

'Any rise in oil price would upset people. But we cannot continue to persist with populist budgets, that will compromise investment climate and employment scenario,' Manmohan Singh told reporters onboard the prime minister's special aircraft.

The prime minister was returning from Riyadh after a three-day visit to the kingdom during which 10 bilateral agreements, including an extradition treaty, were signed between the two countries.

Manmohan Singh said the people can expect 'slight moderation' in the prices of essential commodities soon.

'However, the rabi (winter) crop is coming in now and we can except slight moderation in prices of pulses grains etc,' he said.