Govt may raise fuel price

Govt may raise fuel price

JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana said
yesterday the government may raise domestic fuel prices to reduce
the government's subsidy.

"The rupiah's sharp depreciation against the U.S. dollar has
inflated the subsidy value, therefore making it hard for us,"
Sudjana said.

He said it was therefore necessary to increase fuel prices,
especially diesel oil, to reduce the government's subsidy in
domestic fuel sales.

He said the government might consider increasing the price of
some fuel and maintaining or increasing the subsidy on others.

"I think diesel fuel's price may be raised, because industry
uses a lot of diesel," he said.

"We'll just see what's happens, but the government will take
the best measure for the people."

In a statement delivered to the parliament's plenary session
last week, Minister of Finance Mar'ie Muhammad said the state
budget was under pressure because of the increase in the fuel
subsidy which had resulted from the decline in the rupiah's
value. (das)