Fuel price increase will be announced without prior notice

The government will announce the planned fuel price increase on a secrete date to prevent possible speculation such as fuel stocking and rush from customers.

At a hearing with the House of Representative' Commission VIII, a director for fuel storage and domestic marketing at state oil and gas firm Pertamina, Harry Poernomo said that the government would likely announce the price increase on the same day the increase was made affective.

"So, it is very likely that the announcement will be conducted instantly, on the same day as the fuel price increase, for example, two hours before the fuel price increase is made affective," he said.

Meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro told the same hearing that the planned 12 percent fuel price increase would be made affective across the board, affecting all level of society and industries.

He noted that the fuel subsidies would be distributed in cash to those who really need it.

Some legislators slammed the new minister for backtracking with an agreement between the government and the House made in March that public transportation and low-income people would be exempted from the fuel price increase.

However, Purnomo said that it would be hard to stick to the March agreement, noting that the coupon system for those receiving subsidies was rejected by the House. Therefore, the government would stick to its current decision in the mechanism of fuel subsidy system. (*)