Oil prices to stay at'95 level<\/p>\n
JAKARTA (JP): The government will not increase fuel oil prices
\nthis year since an increase could cause strong inflationary
\npressures, Minister of Mines and Energy I.B. Sudjana said
\nyesterday.<\/p>\n
\"We don't have any plans to increase fuel prices,\" Sudjana
\ntold reporters after installing Soepraptono Soeleiman, a former
\nadviser to the minister, as the new director general of oil and
\ngas, replacing Suyitno Patmosukismo.<\/p>\n
Last year's inflation rate stood at 8.64 percent, down from
\n9.24 percent in 1994.<\/p>\n
The current fuel oil prices were set on Jan. 8, 1993.<\/p>\n
According to Sudjana, the government has no reason to increase
\nfuel oil prices because the international crude oil prices have
\nbeen by and large stable at the US$16.50 per barrel level, the
\nprice used to calculate the cost of fuel production.<\/p>\n
Profits from domestic fuel oil sales are estimated to decline
\nto Rp 827.8 billion (US$359.56 million) in the 1996\/1997 draft
\nstate budget from Rp 1.47 trillion in the current budget.<\/p>\n
Sudjana said that the $16.50 price set for crude oil is
\nappropriate since the international crude oil prices have been
\nhovering at that level.<\/p>\n
Meanwhile, the president of state oil company Pertamina,
\nFaisal Abda'oe, confirmed yesterday that his company has no plan
\nto propose a fuel price increase to the government.<\/p>\n
Abda'oe admitted that profits from fuel sales fluctuates along
\nwith international crude oil price developments.<\/p>\n
Indonesia produces 1.5 million barrels of crude and condensate
\nper day, of which 985,000 barrels of crude are processed in
\ndomestic refineries and the rest exported.<\/p>\n
Indonesia is also the largest exporter of liquefied natural
\ngas in the world with a total annual export of 25 million tons.
\n(04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-prices-to-stay-at95-level-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}