ID :
26868
Mon, 10/27/2008 - 15:36
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http://m.oananews.org//node/26868
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GOVT, DPR TO SIMULATE FUEL PRICE DECREASE
Jakarta, Oct 27 (ANTARA) - The government and the House of Representatives (DPR) were slated on Monday afternoon to conduct a simulated calculation of the effect of the recent world crude price declines on the domestic prices of subsidized fuel oils.
The simulation would take place at a working meeting between the House's Commission-IV and the government represented by Energy and Mineral Resources Minister Purnomo Yusgiantoro and Finance Minister Sri Mulyani at the palriament building here at 2 on Monday afternoon.
Minister Yusgiantoto said at the meeting he would simulate the calculation of the world oil prices and the Indonesian Crude Price (ICP), and its impact on domestic subsidized fuel prices, the amount of subsidy and the state's income.
"We are going to explain everything later," Purnomo said, adding that if the ICP reached US$63 per barrel, the economic price of premium gasoline would be equal to its subsidized retail price of Rp6,000 per liter.
"The ICP at present is still US$71 to US$72 per barrel," he said.
The minister said he was not sure whether the subsidized premium price could be lowered this year.
Commenting on the amount allocated for fuel oil subsidy, Yusgiantoro denied that there was now a surplus in the Amended 2008 State Budget allocation the subsidy set at Rp126 trillion.
"It is not true that there is a fuel oil subsidy surplus. The Rp126 trillion allocated for the subsidy has been used up," the minister said after atttending a function to mark State Electricity Day here on Monday.
A number of parties including legislators as well as observers said earlier that there was a surplus in the allocation for fuel oil subsidy in the Amended 2008 State Budget which could be used to lower the prices of subsidized fuel oils.
The minister said when the world oil price was recorded at US$147 per barrel early this year, it absorbed a lot of the domestic oil subsidy.
"So at present it has been used up," he said.
He said for the state budget allocation for oil subsidy to remain at Rp126 trillion, the Indonesian Crude Price (ICP) should be US$45 per barrel in November-December, 2008.
The simulation would take place at a working meeting between the House's Commission-IV and the government represented by Energy and Mineral Resources Minister Purnomo Yusgiantoro and Finance Minister Sri Mulyani at the palriament building here at 2 on Monday afternoon.
Minister Yusgiantoto said at the meeting he would simulate the calculation of the world oil prices and the Indonesian Crude Price (ICP), and its impact on domestic subsidized fuel prices, the amount of subsidy and the state's income.
"We are going to explain everything later," Purnomo said, adding that if the ICP reached US$63 per barrel, the economic price of premium gasoline would be equal to its subsidized retail price of Rp6,000 per liter.
"The ICP at present is still US$71 to US$72 per barrel," he said.
The minister said he was not sure whether the subsidized premium price could be lowered this year.
Commenting on the amount allocated for fuel oil subsidy, Yusgiantoro denied that there was now a surplus in the Amended 2008 State Budget allocation the subsidy set at Rp126 trillion.
"It is not true that there is a fuel oil subsidy surplus. The Rp126 trillion allocated for the subsidy has been used up," the minister said after atttending a function to mark State Electricity Day here on Monday.
A number of parties including legislators as well as observers said earlier that there was a surplus in the allocation for fuel oil subsidy in the Amended 2008 State Budget which could be used to lower the prices of subsidized fuel oils.
The minister said when the world oil price was recorded at US$147 per barrel early this year, it absorbed a lot of the domestic oil subsidy.
"So at present it has been used up," he said.
He said for the state budget allocation for oil subsidy to remain at Rp126 trillion, the Indonesian Crude Price (ICP) should be US$45 per barrel in November-December, 2008.
