Govt may further cut fuel prices next week

The Indonesian government might further cut prices of subsidized Premium gasoline and diesel next week to keep up with the fall in crude prices in the world market, Bisnis Indonesia reported on Saturday.

?The government has not approved the plan, but there is a positive signal from the President about the planned cut in fuel prices,? the chairman of the Indonesian Chamber of Commerce and Industry (Kadin), M.S. Hidayat said in Jakarta Friday following a presidential meeting on the proposed cut in fuel prices.

Kadin has proposed the government further cut prices of Premium gasoline and diesel to Rp 4,500 and Rp 4,300 per liter, respectively to keep up with the fall in prices of crude oil in the international market.

The government cut prices of Premium gasoline and diesel to Rp 5,000 and Rp 4,800 in December, in line with falling crude oil prices on the international market.

Minister of Finance Sri Mulyani has also agreed on another cut in fuel prices, but the final decision would be made during a meeting on Jan. 12 (Monday). If the plan is approved, the new prices will begin effective on Jan. 15. (*)