ID :
27809
Fri, 10/31/2008 - 21:51
Auther :
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http://m.oananews.org//node/27809
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SUBSIDIZED FUEL PRICE CUT DEPENDS ON NON-SUBSIDIZED GASOLINE PRICE DECLINE : MINISTER
Jakarta, Oct 31 (ANTARA) - The government will lower the price of subsidized gasoline after the price of non-subsidized gasoline drops to below the price of subsidized gasoline which currently stands at Rp6,000 per liter, a minister said.
The government did not want the price of non-subsidized gasoline or pertamax to be lower than that of subsidized gasoline, Energy and Mineral Resources Minister Purnomo Yusgiantoro said in Bekasi, east of here, on Friday.
"I think this is the real consideration to lower the prices of fuel oil," he said.
But the price of non-subsidized gasoline was currently still higher than that of subsidized gasoline, he said.
Only after the Indonesian crude price (ICP) was below US$70 a barrel, would the price of non-subsidized gasoline drop below the price of subsidized gasoline, he said.
"Currently, the ICP is US$71.77 a barrel," he said.
He said if budget allocations for oil subsidy served as consideration, the prices of subsidized fuel oil would unlikely be lowered.
By October 2008, oil subsidy reached Rp130 trillion, or higher than the oil subsidy ceiling of Rp126 trillion quoted in the revised 2008 state budget, he said.
Even if the oil subsidy was lower than the ceiling of 126 trillion, the ICP must be US$40 a barrel in November and December 2008 in order to lower the prices of subsidized fuel oil, he said.
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The government did not want the price of non-subsidized gasoline or pertamax to be lower than that of subsidized gasoline, Energy and Mineral Resources Minister Purnomo Yusgiantoro said in Bekasi, east of here, on Friday.
"I think this is the real consideration to lower the prices of fuel oil," he said.
But the price of non-subsidized gasoline was currently still higher than that of subsidized gasoline, he said.
Only after the Indonesian crude price (ICP) was below US$70 a barrel, would the price of non-subsidized gasoline drop below the price of subsidized gasoline, he said.
"Currently, the ICP is US$71.77 a barrel," he said.
He said if budget allocations for oil subsidy served as consideration, the prices of subsidized fuel oil would unlikely be lowered.
By October 2008, oil subsidy reached Rp130 trillion, or higher than the oil subsidy ceiling of Rp126 trillion quoted in the revised 2008 state budget, he said.
Even if the oil subsidy was lower than the ceiling of 126 trillion, the ICP must be US$40 a barrel in November and December 2008 in order to lower the prices of subsidized fuel oil, he said.
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