Govt agrees with 10 percent hike in fuel price
Friday, February 25 2000 - 03:54 AM WIB
Minister of Mines and Energy Susilo Bambang Yudhoyono said in Thursday that the government in principle agreed the proposal made by members of the House of Representatives (DPR) to limit the increase in fuel prices to 10 percent.
The government shared the House mebers' view that an increase in fuel and electricity tariffs should not burden the financially weak people, he told news papers chief editors at a business lunch.
He cited that in the electricity sector, the government agreed not to increase the tarif for users of less than 900 VA because "We know most of state electricity company PLN's customers fell to that caregory."
"It means if we increase the tariff for this group of people, the hike will burden most of PLN's customers," he said.
Minister of Finance Bambang Sudibyo has proposed a 20 percent increase in fuel prices in a bid to cut the subsidy in the domestic fuel sales. But the House members insisted that the increase should be limited to maximally at 10 percent.
The government and House teams have earlier agreed to increase the electricity tariffs by an average of 29 percent. (*).