Increase in fuel prices may be delayed as coupon system not ready

The plans to raise fuel prices by an average 12 percent in April may have to be delayed as there's indications that the fuel subsidy coupon system is not ready yet, according to a source at the National Development Planning Board (Bappenas) who asked for anonymity.

Bappenas is responsible for the implementation of the coupon system.

The government plans to provide coupon for poor families to allow them to purchase kerosene at current price level, and to public transportation to purchase premium gasoline and automotive diesel at the current price level.

Separately, public relations chief of state oil and gas firm Pertamina Budhi Sulistiyo said that Bappenas also informed him that the agency was facing difficulties to implement the coupon system on time.

But both Budhi and the Bappenas official declined to say what the problem was. "I can't make further comments," Budhi said.

Meanwhile, another government official said that there's big possibility that the state printing company Peruri had not printed the coupon yet because the government had not yet make the payment. He said that Peruri was ordered to print between 13-17 million coupons for the first three months.

Many have also earlier warned the government of possible corruption in the implementation of the coupon system. Analysts also fear of counterfeit coupon.

Meanwhile, Budhy said that Pertamina had provided an additional 10-15 percent fuel supply to anticipate possible jump in fuel demand in the run up to the fuel price increase in April. (*)