Govt lowers gasoline price by Rp 500/l

Government announced on Thursday it would cut retail prices of premium gasoline by Rp 500 per liter from Dec. 1, in line with decline in crude prices to help ease inflationary pressures and spur economic growth.

Minister of Finance Sri Mulyani Indrawati said that the government will be reviewing domestic gasoline prices monthly

With the new price, gasoline retail price would be at Rp 5,500 or about US$0.50 per liter.

Prices of diesel and kerosene would not be lowered, she said.

The government cut subsidies in May this year - raising domestic prices for gasoline, kerosene and diesel by 29% on average - when world oil prices were rising to record levels.(bernard)