Govt asks Pertamina to withdraw plan to set int'l fuel price for exporters
Thursday, May 25 2000 - 02:15 AM WIB
Minister of Mines and Energy Susilo B. Yudhoyono has ordered the state oil and gas firm Pertamina to withdraw its plans to impose international fuel prices standard for the country's exporting firms.
Susilo was quoted by the Bisnis Indonesia daily as saying that the plans had to be discussed first with other related government institutions.
He also said that he wasn't sure if the plans would be against existing ruling.
Susilo said that he could understand that Pertamina was trying to increase government revenue by imposing international fuel price level on exporters, but he said that Pertamina should not implement such a policy by its own without first discussing it with other related government departments.
Under the Pertamina plan, industrial diesel would cost exporting companies US$250 per ton or Rp 2,000 per liter compared to domestic price level of only Rp 600 per liter. The government subsidizes domestic fuel prices.
Exporters have strong protested the Pertamina plan. Susilo made the statement following the outcry from the exporters.(*)