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26863
Mon, 10/27/2008 - 15:24
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GOVT MIGHT LOWER FUEL PRICES IF ICP DROPS TO US$63 : MINISTER
Jakarta, Oct. 27 (ANTARA) - The government is still waiting for the Indonesian Crude Price (IC) to reach US$63 per barrel before considering the possibility of lowering the domestic prices of subsidized fuel oils, according to a minister.
When the ICP price reached US$63 per barrel, it would mean the economic price of premium gasoline was equal to its current domestic retail price of Rp6,000 per liter, Energy and Mineral Resources Minister Puronomo Yusgiantoro said here Monday.
"At present, the ICP is still US$71-72 per barrel. So, we still need to see whether or not it will go down to US$63 per barrel in the coming days," the minister said.
According to Purnomo, the government could not yet say with certainty whether or not the subsidized premium price would be cut this year.
"We will first see how the oil price develops," he said.
He denied media reports that there was now a surplus in the Amended 2008 State budget allocation for fuel oil subsidy which had been set at Rp126 trillion.
"It's not true that there is a surplus in the fuel oil subsidy allocation. The enntire allocation of Rp126 trillion has been used up," he said.
Some legislators and economic observers had earlier suggested there was now a remainder in the state budget allocation for fuel oil subsidy which could be used to lower the domestic fuel oil prices.
But Yusgiantoro said the state budget allocation for fuel oil subsidy had been wholly spent to cover the cost of oil when it reached its record level of US$147 per barrel early this year.
"So, the amount has been spent entirely," he said.
The ICP should be US$45 per barrel during November and December 2008 for the state budget allocation for fuel oil subsidy to remain at Rp126 trillion, he said.
"I am going to explain about these figures at a working meeting with the Commission VII of the House of Representatives (DPR) this noon," he said.
Earlier this year, the government raised the prices of premium gasoline from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 per liter and kerosene from Rp2,000 to Rp2,500 per liter.
When the ICP price reached US$63 per barrel, it would mean the economic price of premium gasoline was equal to its current domestic retail price of Rp6,000 per liter, Energy and Mineral Resources Minister Puronomo Yusgiantoro said here Monday.
"At present, the ICP is still US$71-72 per barrel. So, we still need to see whether or not it will go down to US$63 per barrel in the coming days," the minister said.
According to Purnomo, the government could not yet say with certainty whether or not the subsidized premium price would be cut this year.
"We will first see how the oil price develops," he said.
He denied media reports that there was now a surplus in the Amended 2008 State budget allocation for fuel oil subsidy which had been set at Rp126 trillion.
"It's not true that there is a surplus in the fuel oil subsidy allocation. The enntire allocation of Rp126 trillion has been used up," he said.
Some legislators and economic observers had earlier suggested there was now a remainder in the state budget allocation for fuel oil subsidy which could be used to lower the domestic fuel oil prices.
But Yusgiantoro said the state budget allocation for fuel oil subsidy had been wholly spent to cover the cost of oil when it reached its record level of US$147 per barrel early this year.
"So, the amount has been spent entirely," he said.
The ICP should be US$45 per barrel during November and December 2008 for the state budget allocation for fuel oil subsidy to remain at Rp126 trillion, he said.
"I am going to explain about these figures at a working meeting with the Commission VII of the House of Representatives (DPR) this noon," he said.
Earlier this year, the government raised the prices of premium gasoline from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 per liter and kerosene from Rp2,000 to Rp2,500 per liter.
