Pertamina ready to "secure" fuel price increase policy
Wednesday, June 7 2000 - 04:00 AM WIB
The state oil and gas company Pertamina is ready to "secure" the government policy to raise fuel prices by an average 12 percent in October, according to Pertamina president Baihaki Hakim.
Baihaki was quoted as saying by the Neraca daily that an inter-department team had been formed to help Pertamina secure the new government policy.
He said that the team, with a budget of around Rp 2 billion (US$1 = Rp 8,500), would ensure that there would be no fuel smuggling or piling of fuel products by speculators.
In the past, a policy to raise fuel prices would be preceded by scarcity of the commodity particularly kerosene and premium gasoline due to massive piling by speculators.
The government has announced that it would raise fuel prices in October by 12 percent. The price increase was supposed to be realized in April but was delayed due to widespread public protest.
The government also said that the fuel price would be increased again in April 2001 in a bid to help reduce state budget deficit.(*)