Govt may cut prices of subsidized fuels next year

The government is considering the possibility of cutting prices of subsidized fuels next year in line with the fall in oil prices in the world's market. The price reduction will make the price gap between non-subsidized and subsidized fuels range only between Rp 300 and Rp 400 per litter.

"For the sake of the people, we are ready to cut the prices of subsidized fuels, if the prices of fuels in the international market have reached the subsidized levels," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Thursday.

Purnomo said that the government was evaluating the trend of the fuel prices in the international market.

"If the downward trend in the fuel prices in the world continues, we will cut the prices of subsidized fuels, beginning next year," he said.

Pertamina lowered last week the prices of non-subsidized fuels sold to industries as an adjustment to the fall in the prices of fuels in the international market. The price reduction has made prices of certain non-subsidized fuel products especially Premium gasoline and diesel oil almost the same with those of the subsidized ones. (*)