More industries will have to buy fuel at market prices

More industries will be required to buy fuel at market prices beginning this month as part of the government's program to totally remove expensive fuel subsidy, Kompas reported on Wednesday.

Pertamina's spokesman Muhammad Harun confirmed on Tuesday the plan, saying that more industries would be have to buy the fuel at market prices beginning Sept. 15.

He said that only small industries with fuel consumption of up to 8,000 liters a month would be allowed to buy the fuel at subsidized prices. "Others will have to buy at market prices," he added.

The government removed the subsidy for the sale of fuel to mining companies and industries with a consumption of up to 24,000 kiloliters a month. At present, the market prices of Premium fuel and diesel oil are Rp 5,160 and Rp ,5,350 per litter, respectively while that of kerosene is Rp 5,600 per litter. For a comparison, the prices of petroleum and diesel oil for the public range between Rp 2,400 to Rp 2,500 per litter (*)