Govt cuts fuel and electricity prices

The government announced on Monday a cut in the price of some fuel products saying that the new price will take effect from midnight on that day.

The fuel products are automotive diesel fuel, diesel for industrial use and kerosene for industrial use.

The president director of state oil and gas firm Pertamina, Baihaki Hakim, announced the price reduction after a cabinet meeting on Monday.

Baihaki said that the price of automotive diesel fuel would be cut to Rp1,650 (US$=Rp8,870) per liter from Rp1,890 per liter; and diesel for industrial use would be reduced to Rp1,650 per liter from Rp1,860 per liter. Meanwhile, the new price of kerosene for industrial use would be Rp1,800 per liter, from the current Rp1,970 per liter.

The price of other fuel products including ?premium? gasoline and kerosene for household use is kept at the current level.

Also on Monday, state electricity firm announced that electricity prices mainly for business use would be cut by 2.5 percent. The government had previously proposed a delay in increases in phone charges.

On January 2, the government raised fuel prices up to 22 percent, having increased electricity and telephone charges by an average of six and 15 percent respectively the day before.

The price hike incited nationwide protests that led to street rallies in different parts of the country. (leo)