The delay in fuel price hike will not last more than one month

The delay in the fuel price hike will not last more than one month because the longer the delay, the heavier the budgetary burden that has to be born by the government, according to the secretary general of the ministry of energy and mineral resources Djoko Darmono.

Djoko said that he hoped the government would be able to decide the new price formula before the end of January so that the price increase could be implemented in the following month.

The increase would not be lower than 30 percent so that the government?s fuel subsidy of about Rp 30.3 trillion allocated in the 2002 state budget would not suffer a deficit, he said as reported by Media Indonesia on Friday.

Separately, Rachmad Sudibyo, the director general of oil and gas, said that the prices of diesel oil, premium and other fuel except kerosene would be floated to international prices. The price indicator will be changed every month based on the fluctuation of fuel prices in the international market.

?If the price in international market declines, domestic price will also decline,? he was quoted as saying by Kompas daily.(*)