Govt, House agree on 2009 fuel subsidy

The House of Representatives (DPR) and the government agreed Thursday to a 20 percent cut in 2009 fuel subsidy to Rp 100.6 trillion from a year earlier following a drop in global crude prices, Antara news agency reported.

Fuel consumption in 2009 was projected at 36.9 million kiloliters, up 3 percent from 35.6 million kiloliters quoted in the revised 2008 state budget, the coordinator of the House`s working committee for assumptions in the draft 2009 state budget, Harry Azhar Azis, said.

"The fuel subsidy is for the consumption fo 19.4 million kiloliters of Premium gasoline, 5.8 million kiloliters of kerosene, 11.6 million kiloliters of diesel oil, and gas equivalent to 4 million kiloliters of kerosene under the kerosene-to-gas conversion program," he said. (*)