Govt may reduce fuel prices by up to Rp 800 a liter

The Jakarta Post | Tue, 11/04/2008 1:45 PM  

Energy and Mineral Resources Ministry has proposed the price of subsidized fuels to be reduced by around Rp 500 to Rp 800 per liter following a decline in crude oil prices, an official said. 

Subsidized Premium fuel currently retails at Rp 6,000 per liter while diesel retails at Rp 5,500 per liter. 

Director General for Oil and Gas Evita Legowo said the new pricing likely to be finalized soon and that it could be implemented as soon as Novembers. However, she said, reducing fuels prices would mean an increase in the total budget allocation of fuel subsidies for this year by another Rp 3 trillion to Rp 129 trillion. 

Evita said as of October this year, the government had spent Rp 130 trillion. 

“Should we implement the price cut, we need another Rp 3 trillion until the end of December,” she said. (and)