Fuel subsidy can reach Rp 100 trillion, if sales not restricted
Saturday, June 26 2010 - 02:23 AM WIB
Energy and Mineral Resources Minister Darwin Zahedy Saleh said in Jakarta on Saturday that the ministry was currently studying a number of scenarios on how to limit the distribution of the subsidized fuels to ensure that the restriction would not affect the low income people.
He said that when the formula on the restriction of the subsidized fuels was ready, they would be soon discussed with members of the House of Representatives (DPR) for approval.
?For sure, if the sales of subsidized fuels are not restricted, the subsidy will reach Rp 100 trillion well above the Rp 90 trillion stated in the budget,? he added. The minister has said that the government would prefer to limit the sales of the subsidized fuels rather than raise the fuel prices in reducing the government?s subsidy.
The government earlier said that the subsidized fuels would be distributed only to public transportation vehicles and motor bikes. The sales of subsidized fuels to private cars will be limited depending on their engine capacity. (*)