Fuel prices increased to the limit

Fuel prices increased to the limit

The Jakarta Post, Jakarta

State-owned oil and gas company Pertamina set fuel prices for
November at the maximum allowable price, which the government
explained was due to soaring oil prices on the world market as
war talks in the Middle East persist.

Compared to the previous month, the price of automotive diesel
rose to Rp 1,550 per liter from Rp 1,440, and industrial diesel
to Rp 1,520 per liter from Rp 1,420.

Premium gasoline and bunker oil remain unchanged at their
highest range of Rp 1,750 and Rp 1,150 per liter respectively.

Pertamina gave no explanation for the increase, but Minister
of Energy and Mineral Resources Purnomo Yusgiantoro told
reporters earlier that oil prices had jumped to US$28 a barrel --
the upper end of the trading band set by the Organization of
Petroleum Exporting Countries (OPEC).

Talks over a possible U.S. attack against Iraq is stoking oil
prices on fear that war in the vicinity of the world's largest
oil producers could disrupt world oil supplies.

The government introduced monthly price adjustments last
January, replacing the political risky move of announcing gradual
price hikes as required under the International Monetary Fund
(IMF) reforms program.

Fuel prices now track the movement of world oil prices, and
are set by Pertamina each month based on the previous month's
price average and estimation on future movement.

Car owners pay 75 percent of the market price for fuel, except
for premium gasoline, which Pertamina quotes at 100 percent of
its market price.