Pertamina may cut fuel prices by 3-5 percent: Rachmat

State oil and gas company Pertamina may cut fuel prices for July by 3-5 percent except the price of gasoline which will be kept at the current level, oil and gas director general Rachmat Sudibyo told Petromindo.com on Monday.

The current price of gasoline is Rp 1,750 per liter (US$=Rp8,585), while automotive diesel oil sells for Rp1,400, industrial diesel oil Rp1,390, kerosene for industry Rp1,410 and kerosene for low income households Rp600.

Pertamina?s downstream director Muchsin Bahar mentioned the falling price of the Mild Oil Platts Singapore (MOPS) as having caused Pertamina consider cutting fuel prices for July.

The strengthening of rupiah value against other currencies was another factor behind the plan to cut fuel prices, Muchsin said on Monday.

Since Jan 16, the government has pegged most fuel products except kerosene for households and small industry, to prices in neighboring Singapore. Starting from March the prices are set monthly. (godang)