Govt announces fuel price hike

The government announced early on Saturday that the prices of fuels for domestic consumption raised in an average of 126 percent.

Coordinating Minister for the Economy Aburizal Bakrie announced at the Ministry of Finance compound that premium gasoline was raised from Rp 2,400 to Rp 4,500 (23 U.S. cents to 44 U.S. cents) per liter while diesel fuel is raised from Rp 2,100 to Rp 4,300 per liter.

Kerosene, mostly used by poor families, was raised almost three-fold from Rp 700 to Rp 2,000

The announcement was made despite protests by thousands of demonstrators, some burning tires and throwing rocks at riot police who responded by firing tear gas and warning shots into the air.

President Susilo Bambang Yudhoyono said the cash-strapped government, which for years has subsidized fuel to let motorists fill up for less than 95 cents per gallon and help protect Indonesia's poorest, could not afford to keep doing so amid spiraling global oil prices.(godang)