Fuel price increase maybe lower than 30%

The government will go ahead with its plan to raise fuel prices, but the price hike will not reach 30 percent as approved by the House of Representatives, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Tuesday.

"Now, we have yet to decide the percentage of the price hike. Perhaps the hike will not reach 30 percent. It might be 25 percent or even 15 percent. The point is, we do not want to burden people," he was quoted by Antara as saying.

The fuel price increase could be moderate given the decreasing trend in the oil price, Purnomo said.

At present, the world price of oil is hovering around US$21 per barrel, below the assumption of the 2002 state budget at $22 per barrel.

The House has approved the government's plan to raise fuel prices by up to 30 percent this year as part of the efforts to cut fuel subsidies.

The exact timeframe for the fuel price increase remains unclear but Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti earlier said the price increases would be implemented this month.(*)