Fuel prices for industries down 8 percent

The Jakarta Post Jakarta

State oil and gas company Pertamina said it had cut fuel prices for industries by an average of 8 percent for January.

Pertamina said in a statement on Monday it had reduced the price for industrial diesel oil by 13 percent to Rp 740 (7.08 U.S. cents) per liter, kerosene by 8 percent to Rp 820 per liter and fuel oil by 3 percent to Rp 615 per liter.

The prices for automotive diesel oil and gasoline remained stable for the second consecutive month at Rp 900 and Rp 1,450 per liter respectively.

All the new prices are half the average international fuel prices for December, plus a 5 percent handling fee, Pertamina spokesman Ridwan Nyak Baik said.

Pertamina charges industrial users 50 percent of international prices as part of the government's program to reduce fuel subsidies. This was introduced in April 2000.

Nonindustrial users, including motorists, bus operators and households, who enjoy a larger fuel subsidy than industrial users, now buy gasoline at Rp 1,450 per liter, kerosene at Rp 400 per liter, and automotive diesel oil at Rp 900 per liter.

Foreign oil and gas, mining and shipping companies have to buy fuel at international prices.