Govt may cut fuel prices if crude prices continue to go down

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Friday the government might consider to lower down subsidized fuel price this year if crude prices continue to go down.

?Currently crude prices are hovering around US$58 per barrel. If this downward trend continues, government will also cut fuel prices,? Purnomo told reporters. State budget assumption for 2006 oil price is $57 per barrel.

Purnomo did not give the time line, saying that the government must carefully examine the trend and political situation in Middle East before making decision to cut fuel prices. Purnomo said current crude prices were very much influenced by Iran nuclear crises. ?We hope Iran nuclear woes could be over soon, ? he said. He added that Iran?s position is very influential in affecting global oil supply as the country pumps 3-3.5 million barrels of oil per day. (godang)