GOVT READY TO EXPLAIN FUEL OIL PRICE HIKES TO HOUSE'S INQUIRY COMMITTEE

Jakarta, July 15 (ANTARA) - The government was ready to explain the reason for the fuel oil price hikes late in May, 2008 to the House's Inquiry Rights Committee.

"The government is ready to clarify why the subsidized oil prices have to be raised," Energy and Mineral Resources Minister Purnomo Yusgiantoro said here on Tuesday.

Purnomo also said that his side had already asked for the assistance of his expert staff to enable them to prepare good answers.

The inquiry rights committee of the House was scheduled to hear Purnomo's explanation and state oil and gas company PT Pertamina on Wednesday (July 16), while on July 17 the upstream oil and gas regulatory agency (BP Migas) has been asked to provide more clarifications on the price hike.

According to Purnomo, actually the government had raised fuel oil prices 37 times on various considerations.

The fuel oil price hikes, he added, constituted an effort of the government for the diversification of energy, creating efficiency.

Another reason was to reduce the disparity between non subsidized and subsidized fuel oil, so that missappropriation of subsized fuel oil could be reduced.

"We are also seeking justice for those entitled to enjoy the subsidy," he said.