Govt to introduce fuel coupons for buses<\/p>\n
JAKARTA (JP): The government may introduce fuel coupons for
\npublic buses to spare the operators, and therefore the public,
\nfrom the planned increase in fuel prices next year.<\/p>\n
Minister of Mines and Energy Susilo Bambang Yudhoyono told
\nreporters he was still studying ways of protecting the poor from
\nfuel price increases as the government tries to cut the huge
\nsubsidy bill in next year's budget.<\/p>\n
Speaking after a seminar on the impact of autonomy on the
\neconomy, Bambang said he was looking at three proposals on how to
\nprotect the public transport sector.<\/p>\n
One will be to distribute coupons for bus operators, while the
\nsecond scheme will allow operators to claim a refund on the money
\nspent on fuel. The third is to differentiate private cars from
\npublic transportation vehicles at fuel stations.<\/p>\n
He also suggested kerosene should be exempted from the price
\nhikes because the fuel was still widely used by small households.<\/p>\n
The government is currently negotiating with various parties,
\nincluding the International Monetary Fund and the House of
\nRepresentatives, on the size and the timing of the increase in
\nfuel prices as it drafts the new budget for April 2000-December
\n2000.<\/p>\n
Fuel subsidies are estimated to have cost the government some
\nRp 27 trillion ($3.8 billion) in the fiscal year ending March 31.<\/p>\n
Bambang said his office had proposed an average increase of 20
\npercent to be effected after April 1.<\/p>\n
He said this would translate to Rp 1,100 (15.7 US cent) a
\nliter for premium gasoline, up from Rp 1,000, and Rp 720 (10.2 US
\ncents) for diesel oil, from Rp 550.<\/p>\n
\"The government is open to debate on how great the increase
\nwould be and when to apply it,\" he said.<\/p>\n
The House of Representatives' leadership had even suggested
\npostponing any increases until 2001, while the business community
\nsaid they should be introduced in June, he said.<\/p>\n
The IMF, which is providing massive loans to the government,
\nearlier suggested prices be raised in January.<\/p>\n
Bambang said the government welcomed more suggestions that
\nwould allow it to make a more balanced decision. \"Five months
\nwill be enough for communicating this idea to the public,\" he
\nsaid.<\/p>\n
Meanwhile, state oil and gas company Pertamina announced on
\nWednesday its fuel production at the refinery in Cilacap, Central
\nJava, would soon rise by 16 percent.<\/p>\n
The increase has been made possible with the completion of the
\nde-bottlenecking project in the Processing Unit IV, Husni Banser,
\nthe spokesman for the Cilacap refinery facility, said.<\/p>\n
With the project in place, the refinery could process up to
\n348,000 barrels of crude oil per day, he said.(03\/45)<\/p>",
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