ID :
26889
Mon, 10/27/2008 - 17:13
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http://m.oananews.org//node/26889
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GOVT TO WAIT FOR HOUSE'S POLITICAL DECISION ON FUEL OIL PRICE
Jakarta, Oct 27 (ANTARA) - The government will wait for a political decision by the House of Representatives (DPR) before deciding to lower or maintain the present subsidized fuel prices, Energy and Mineral Resources Minister Purnomo Yusgiantoro siad.
"We are waiting for the House's political decision," Yusgiantoro said before atteding a working meeting with Finance Minister Sri Mulyani and the House's Commission VII here on Monday.
He said in the joint meeting the government and the DPR would conduct a simulated calculation of the effect of the downturn in the world crude price on the subsidized fuel oil prices at home.
According to the minister, there were two factors that could lead to the lowering of the subsidized fuel oil price. The first was a decline in the world crude price to the level of the subsidized fuel oil prices at home and second, the existence of a remainder in the Amended 2008 State Budget allocation for fuel oil subsidy.
"It's up to the DPR which of two factors it will consider," Yusgiantoro said.
He added that at the working 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.
Purnomo said 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.
Commenting on the amount allocated for fuel oil subsidy, Yusgiantoro denied that there was now a surplus in the Amended 2008 State Budget allocation for fuel oil subsidy set at Rp126 trillion.
"We are waiting for the House's political decision," Yusgiantoro said before atteding a working meeting with Finance Minister Sri Mulyani and the House's Commission VII here on Monday.
He said in the joint meeting the government and the DPR would conduct a simulated calculation of the effect of the downturn in the world crude price on the subsidized fuel oil prices at home.
According to the minister, there were two factors that could lead to the lowering of the subsidized fuel oil price. The first was a decline in the world crude price to the level of the subsidized fuel oil prices at home and second, the existence of a remainder in the Amended 2008 State Budget allocation for fuel oil subsidy.
"It's up to the DPR which of two factors it will consider," Yusgiantoro said.
He added that at the working 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.
Purnomo said 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.
Commenting on the amount allocated for fuel oil subsidy, Yusgiantoro denied that there was now a surplus in the Amended 2008 State Budget allocation for fuel oil subsidy set at Rp126 trillion.
