Fuel price hike to be decided tonight, Pertamina anticipates demand

The planned fuel price hike will be decided tonight. Related officials would gather in the office of the National Development Planning Board (Bappenas) office building to decide the fuel price increase.

The house of representatives has approved a 12 percent increase in fuel prices, starting October. However, a number of legislators called on the government to postpone again the increase if the social cost was too high to bear.

"If the social cost is so high and it creates unrest, the government should think of it again. We agree that it is time to increase fuel prices, but the government must be capable to contain its impacts," said Hatta Radjasa, head of the Reform faction.

He called on the government not to announce the fuel price increase if the coordinating minister for economic affairs was not in the country yet.

Meanwhile, House Deputy Speaker Soetardjo Soerjogoeritno of the Indonesian Democratic Party of Struggle said that the people were not yet ready to bear the fuel price increase.

In anticipation of fuel price hike, state oil and gas firm Pertamina has maximized the operation of its two major refinery plants, Balongan in West Java and Cilacap in Central Java.

Tuty Anggrahini, head of Pertamina's fuel processing and domestic marketing unit III, said that the two refineries were currently running at 100 percent of their maximum capacity.

"Now, we have 25,000 kilo liters of fuels in our piping lines, and it's ready to be opened anytime," she told Bisnis.

She noted that his unit was ready to supply any demands arising in Java and Bali, especially in Jakarta, West Java and Central Java.

She said her unit had enough fuel stocks. She noted that the unit had in stocks 119,200 kilo liters of kerosene, 77,000 kilo liters of premium, and 60,000 kilo liters of diesel oil. (*)