Government expects to raise fuel prices in July

The government plans to increase fuel prices in July this year after it delayed the increases this month due the public's opposition, The Jakarta Post reported.

Director general of oil and gas at the Ministry of Mines and Energy Rachmat Sudibyo said on Thursday the government was gearing up campaigns to disseminate information on the fuel increases that the plan would no longer meet opposition from the public.

The government initially planned to increase fuel prices by an average 12 percent in April 1 this year as part of the efforts to cut the government's subsidy and state budget burdens. It is part of the agreement with the International Monetary Fund (IMF), which provides bailout loans to the country.

But, the planned fuel price hike was dropped following massive demonstrations to protest the plan.

Rachmat said the delay did not affect the government's agreement with IMF since the agreement only referred to an increase in fuel prices within this year without specifying a date. (*)