Govt has no plan to increase fuel prices: Finance minister

Though global oil prices have surpassed the prices assumed in this year's state budget, the government says it has no plans to raise domestic fuel prices, Antara reported Thursday.

"Fuel price increases have not been discussed," Minister of Finance Yusuf Anwar said on Thursday.

However, he said it would be expensive to maintain the fuel subsidy with global oil prices so high.

The minister said of the Rp 76 trillion (US$=Rp.9,800) in funds allocated in the state budget for the fuel subsidy in 2005, some Rp 46 trillion had been disbursed in the first six month of the year.

He said the remaining Rp 30 trillion would only last for the next three months as long as oil prices stayed above $60 per barrel.

The state budget uses an oil price assumption of $45 per barrel.

"If fuel prices stay above $60 per barrel, the subsidy will reach Rp 120 trillion this year," he said.

Yusuf, however, said the government could propose a budget revision and ask the House of Representatives to approve an additional subsidy.

The government will propose a budget revision in August.(*)