Future fuel prices to be determined by Minister of Energy

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has said that the change in the fuel prices in the future would be decided by his office upon consultation with Coordinating Minister of Economy.

Speaking to reporters on Monday, Purnomo said that in the future the fuel prices would be regularly adjusted to the development of oil prices in the international market through a mechanism which was currently being prepared by the government.

"In the future, the prices of fuel prices will no longer be determined by the President," he said. He, however, ruled out the possibility of another fuel increase this year.

The minister also said that his office would invite assistants of governors from all of the country's provinces this month to attend a briefing on the change in the fuel distribution system.

He said that BPH Migas, the government's regulatory body for oil and gas downstream industries, had completed the drafting of the regulation on the country's new fuel distribution system.

The fuel distribution system will undergo a major change in line with the termination of the Publish Service Obligation (PSO) of the state owned oil and gas company Pertamina. With the termination of the PSO rights, Pertamina will no longer control the fuel distribution system in the country. Under the new oil and gas law, the country's retail fuel market will be opened to new players beginning next year. (dino)