Govt raise fuel prices for mining and oil investors 100 percent

The government has decided to raise fuel prices by 100 percent for foreign mining and oil investors, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said.

Purnomo told reporters at his office that the Cabinet meeting on Monday had also agreed to impose a 100 percent increase for fuel sold to foreign-flagged ships on April 1.

As a matter of fact, a number of foreign mining and oil investors have been buying fuel from Pertamina on voluntary basis, considering they don't deserve the government's subsidy.

Other industrial customers will have to buy fuel from state oil and gas company Pertamina at 50 percent higher than the current price on April 1, Purnomo said.

The Cabinet decided to keep price increases for kerosene and fuel at gas stations unchanged on April 1 to continue providing poor people and public transportation with cheap fuel.

The government delayed the price increase for kerosene and fuel at gas stations until Oct. 1 this year, Purnomo said.

Initially, under the state budget, the government planned to increase fuel price for all customers by an average 20 percent on April 1 to cut the government's subsidy by Rp 4.3 trillion in this fiscal year. (Bodega)