Fuel prices could rise 70 to 80 percent: Kalla

Domestic fuel prices could rise by 70 to 80 percent when the government hikes the cost of the heavily subsidized resource next month, Vice President Jusuf Kalla said in Kuta, Bali, the Investor Daily Indonesia newspaper reported in its Saturday edition.

The premium oil price will be in between Rp 4,080-Rp 4.320.

"I say that it will be a minimum 50 percent. It could be 70 or 80 percent," Kalla told reporters during a visit to the resort island of Bali when asked about the increase.

Until this day, the government has not yet decided on the date and how much the price hike will be. Government officials have been issuing different statements on the issue.

The other day State Minister of National Development Planning Sri Mulyani said the price hike would be minimum 50 percent

President Susilo Bambang Yudhoyono has promised to raise fuel prices gradually to wean Indonesians off Asia's cheapest gasoline at 20 U.S. cents a liter and to cut fuel subsidies that eat up a large chunk of the budget.(*)