Govt to maintain fuel prices during 2009: SBY
Tuesday, February 3 2009 - 12:59 AM WIB
President Susilo Bambang Yudhoyono (SBY) said on Monday that the current prices are ?appropriate? and ?in accordance? with the projected movement of global crude oil prices and with the composition of the 2009 state budget.
?At market levels, the prices of Premium tend to rise above Rp 4,000 per liter (1US$ = Rp 11,700); diesel tends to decline from Rp 5,000 per liter, and kerosene tends to stay at Rp 5,000 per liter.
?Given these conditions, the government will continue subsidies for diesel and kerosene;? ,Yudhoyono said, addressing a press conference after a Cabinet meeting at the Presidential Palace. Given the low price, Premium is no longer subsidized.
The government has predicted, based on the analysis of the movement of global crude oil prices that the Indonesian Crude Price (ICP) would range between US$40 and $60 per barrel during 2009.
It will therefore maintain domestic prices of Premium gasoline at Rp 4,500 (36 US cents) per liter, diesel at Rp 4,500 per liter and kerosene at Rp 2,500 per liter, as set on Jan. 15.
Coordinating Minister for the Economy Sri Mulyani Indrawati said the government?s decision to maintain the current level of fuel prices was based on forecast treads in global oil prices up until the end of 2009, as well as recent trends during the second half of 2008.
?You can also see that fuel prices are not solely determined by the international market, but there are also currency fluctuations. (*)