Govt decides to cut oil prices from January 1

By Godang Sitompul

Following the oil prices? drop at the global market, Energy and Mineral Resources Minister Sudirman Said announced on Tuesday that the government had decided to cut oil fuel prices.

He said that the gasoline premium is reduced by Rp 900 from Rp 8,500 per liter to Rp 7,600 per liter, and diesel fuel by Rp 250 from Rp 7,500 per liter to Rp 7,250 per liter, while kerosene is maintained at Rp 2,500 per liter.

"The new prices will be effective since January 1, 2015 at midnight,? said Minister Sudirman Said.

Minister Sudirman made the formal annouuncement in a press conference which was also attended by Finance Minister Bambang Brodjonegoro, Economic Coordinating Minister Sofyan Djalil, and State-Owned Affairs (BUMN) Minister Rini Soemarno at the headquarters of the economic coordinating ministry in Jakarta on Tuesday.

According to Sudirman, the governnent?s plan to cut the subsidized oil prices was in line with its plan to set the oil prices at economic prices.

Editing by Benget Besalicto ST.