Three scenarios for fuel price hike

Ministry of Energy and Mineral Resources has proposed three scenarios to raise fuel prices in line with soaring international market prices, the Bisnis Indonesia newspaper reported in its Tuesday edition.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government will adjust the domestic fuel prices with international prices within two years or until 2007.

“Currently we are discussing (the plan). We have already submitted the general concept on the adjustment of fuel prices. There will be three scenarios, which will be in harmony with our fiscal system,” Purnomo said. during a hearing with the House of Representatives’ Commission VII in Jakarta on Monday.

The three scenarios are to fix new fuel prices in phases, automatic price adjustment, phased automatic adjustment and direct hike.

The minister mentioned that the first scenario will have fuel price hike according to the need and it will be fixed by the government.

In the case of second scenario, the price will be increased automatically and in phases.

Meanwhile, a Pertamina official said that the government will increase the prices of three types of fuels by 15-30 percent. But when the new prices will be effective is not clear because Pertamina is still waiting for the Cabinet decision. (*)