Indonesia temporarily stops using MOPS-based fuel pricing
Friday, January 24 2003 - 03:13 AM WIB
The government has planned to temporarily stop setting fuel prices for the country?s domestic market on the price index of Mid Oil Platts Singapore (MOPS) in order to prevent the prices from skyrocketing, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Thursday.
Purnomo said the country will use MOPS price index again only after world oil prices return to US$25 per barrel.
?We estimate that oil prices will remain high. Accordingly, we do not use MOPS for the time being. We will keep the current prices,? the minister told reporters.
Purnomo said world oil prices had reached $30 per barrel, far above OPEC?s basket price of $22-28 per barrel.
From March 2002, the government sets fuel prices for the domestic market every year based on the MOPS price index. (*)