Govt to link fuel prices with MOPS again
Wednesday, May 7 2003 - 01:32 AM WIB
Indonesia will once again adjust its domestic fuel prices for June to the Mild Oil Platts Singapore (MOPS) price index, oil and gas director general Iin Arifin Takhyan said Tuesday as reported by Kompas daily.
The move was prompted by expectations that world crude oil prices would stay below US$25 per barrel during the whole month of May, the official told reporters.
With such price levels, domestic fuel prices must be set according to MOPS, Iin Arifin said. ?If that happens, domestic fuel prices may have to be reduced,? he said.
The government in January 2003 stopped using MOPS in setting domestic fuel prices after world crude prices skyrocketed to $30 per barrel. Fuel prices for the domestic market were five percent above MOPS when the move was taken.
The government started in March 2002 setting fuel prices at home every month based on the MOPS price index. (*)