Govt, House agree to increase fuel prices by 12%
Tuesday, February 29 2000 - 04:00 PM WIB
The government and the House of Representatives' budget committee agreed on Monday to raise fuel prices an average of 12 percent beginning in April, according to Minister of Mines and Energy Susilo Bambang Yudhoyono.
However, the price of kerosene for the poor and fuel for public transportation and state electricity firm PT PLN will not increase as they will be subsidized by the government.
Bambang said the price of premium gasoline would be raised 15 percent to Rp 1,150 per liter from the current price of Rp 1,000.
The price of automotive diesel oil would increase to RP 600 per liter from RP 550, industrial diesel to Rp 550 from RP 500, kerosene to Rp 350 from Rp 280 and bunker oil to Rp 400 from Rp 350 per litter.
Bambang said the average 12 percent increase in fuel prices would mean a Rp 22.4 trillion fuel subsidy in the April-December budget.
Separately, deputy chairman of the Golkar Party Agung Laksono said that the party would reject the planned 12 percent increase in fuel prices. He said the party would fight to maintain fuel prices at current levels. (*)