Indonesia Calculating Premium Gasoline Price Increases

Rabu, 22 Februari 2012 | 12:22

The Indonesian government is now calculating a price increase for subsidized premium gasoline in line with a proposal to limit fuel consumption, a minister has confirmed.
Energy and Mineral Resources Minister Jero Wacik said on Tuesday that the government, which has planned to draw up a policy this year to limit gasoline use, is considering a price within the reach of most people.
“The option of reducing subsidy by increasing price will take into account people’s purchasing power,” the minister said.
However, he added, the fuel-to-gas conversion option would remain to be applied until the next several years.
The government will also increase the number of infrastructure facilities at refueling stations to provide enough high-octane Pertamax stock, he said.
Wacik said that the government’s proposals would be jointly studied by the House of Representatives Commission VII on energy affairs. The decision will be made before April 1.
The minister said that the government was also preparing the draft 2012 revised state budget that would be submitted to the House.
It is expected that the 2012 revised state budget would accommodate the increase in the premium gasoline price.

“It is hoped the proposals will be cleared before the deadline of April 1, 2012, after which a definite decision has to be taken,” the minister said.