ID :
33639
Tue, 12/02/2008 - 22:55
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http://m.oananews.org//node/33639
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GOVT YET TO DECIDE AMOUNT OF DIESEL OIL PRICE CUT
Jakarta, Dec 2 (ANTARA) - Energy and Minderal Resources Minister Puronomo Yusgiantoro said the government was studying the possibility of lowering the domestic diesel oil price but denied the price cut would be set at Rp500 - Rp1,000 per liter.
"We are not saying the diesel oil price will be reduced by Rp500-Rp1,000 per liter but we have to see if the price cut can be bigger. Anyway, there will be no problem if it is either smaller or bigger," Yusgiantoro said here on Tuesday.
He said the government at present was studying the possibility of lowering the diesel oil price in January next year but the amount of the reduction had yet to be fixed.
"To fix the amount of reduction, the government will adjust it with the Indonesian Crude Price (ICP), the rate of exchange and tax component namely value added tax (PPN) and motor vehicles oil tax (PBBKB)," he said.
Yusgiantoro said the government would continue to evaluate the prices of premium gasoline, diesel oil, and kerosene. He said the premium gasoline price was reduced on December 1 from Rp6,000 to Rp5,500 per liter, but the diesel oil price was still being evaluated.
Last May, the government raised the premium gasoline price from Rp4,500 to Rp6,000 per liter but starting from December 1, 2008 it was reduced from Rp6,000 to Rp5,500 per liter.
A number or parties have said the cut in the premium gasoline price should be immediately followed by a diesel oil price cut on January 1, 2009 by around Rp500 or Rp300 per liter.
Following the Rp500 cut in premium gasolne price on Monday, December 1, the Down-stream Oil and Gas Regulating Body (BPH Migas) predicted subsidized premium gasoline consumption in the country would increase by about 1-5 percent.
Speaking to the press after attending a closed-door meeting with the House of Representatives (DPR)'s Commission VII dealing with energy affairs here Monday, BPH Migas chief Tubagus Haryono said the expected increase in consumption after the price cut was something normal.
"We are not saying the diesel oil price will be reduced by Rp500-Rp1,000 per liter but we have to see if the price cut can be bigger. Anyway, there will be no problem if it is either smaller or bigger," Yusgiantoro said here on Tuesday.
He said the government at present was studying the possibility of lowering the diesel oil price in January next year but the amount of the reduction had yet to be fixed.
"To fix the amount of reduction, the government will adjust it with the Indonesian Crude Price (ICP), the rate of exchange and tax component namely value added tax (PPN) and motor vehicles oil tax (PBBKB)," he said.
Yusgiantoro said the government would continue to evaluate the prices of premium gasoline, diesel oil, and kerosene. He said the premium gasoline price was reduced on December 1 from Rp6,000 to Rp5,500 per liter, but the diesel oil price was still being evaluated.
Last May, the government raised the premium gasoline price from Rp4,500 to Rp6,000 per liter but starting from December 1, 2008 it was reduced from Rp6,000 to Rp5,500 per liter.
A number or parties have said the cut in the premium gasoline price should be immediately followed by a diesel oil price cut on January 1, 2009 by around Rp500 or Rp300 per liter.
Following the Rp500 cut in premium gasolne price on Monday, December 1, the Down-stream Oil and Gas Regulating Body (BPH Migas) predicted subsidized premium gasoline consumption in the country would increase by about 1-5 percent.
Speaking to the press after attending a closed-door meeting with the House of Representatives (DPR)'s Commission VII dealing with energy affairs here Monday, BPH Migas chief Tubagus Haryono said the expected increase in consumption after the price cut was something normal.
