House to question Premix price rise

JAKARTA (JP): The House of Representatives would ask the Ministry of Mines and Energy about the Rp 50 increase in the price of premix gasoline, a Commission VI member said yesterday.

Erie Soekardja, the commission's chairman and Soenaryo Hadade of the Golkar faction said the commission wanted to ask the minister why the premix gasoline price was increased.

Since Nov. 30 the premix gasoline price has risen from Rp 875 a liter to Rp 925 a liter in Jakarta.

In some other cities, like Bandar Lampung and Yogyakarta, the price rose from Rp 900 to Rp 950 per liter on Nov. 29.

The Premix Producers and Distributors Association said in October it would determine a rational and objective price increase for premix gasoline which they said had not risen in three years.

At the time, the association's representative Karim Kono said one objective reason was the large amount of imported chemicals used in making premix. Chemical prices fluctuate depending on the U.S. dollar exchange rate and Indonesia's inflation rate.

Erie said the Minister of Mine and Energy I.G. Sudjana once disclosed the government's plan to increase the price of premix. "But the House has not yet approved that," he said.

Commission VI's vice chairman Muchsin Bafadal said the commission had not yet approved the government's planned increase because further discussions between the House and the ministry had not yet been held.

Commission VI deals with mining and energy among other things.

"We hope the government will postpone the increase because it fears the prices of goods will also rise," Muchsin said.

Erie Soekardja said "we want to get an explanation from the ministry at a hearing on Dec. 11."

House member Royani Haminullah of the Indonesian Democratic Party faction said the government should have consulted the House on the increase. "They're the rules of the game," he said.

Vice chairman of the Armed Forces faction Haris Sudarno told Antara news agency he had no idea why the government increased the premix gasoline price without an official announcement.

He said he expected the increase would not cause other fuel prices to rise.

"Maybe the increase in the premix price is meant to balance the price of fuel, which increased last year," Hari said.

The House members acknowledged premix was not as widely used as premium gasoline but said "its new price must affect the prices of other commodities."

"Producers usually link the prices of their goods to increases in fuel prices," Muchsin said. (sur)