VIVAnews – Indonesian government estimates that the price of premium fuel will be reduced again early next year.
“Perhaps in January,” said Indonesian Vice President Jusuf Kalla, Jakarta, Monday, Dec. 8.
Kalla also said that next year the government will no longer subsidize premium fuel, because even now it is no longer subsidized. “That’s the concept. We will only subsidize those purely commercial. The commercial ones are actually diesel fuel. As for premium fuel, it’s mostly for private-owned cars. No trucks or factories use it,” he said.
Meanwhile, as for diesel fuel, Kalla said, that in principle the price will be reduced because the price is determined by three factors: overseas price, subsidy, and currency exchange rate. “Therefore, because international prices have already fallen, our prices should be reduced too,” he said.
However, he still cannot determine the exact amount of decrease in diesel fuel prices because the calculation must take into account the latest price, which would be the result of the OPEC (Organization of the Petroleum Exporting Countries) meeting on 15 December 2008
Earlier this month, the government had reduced the price of premium fuel from Rp 6,000 per liter to Rp 5,500 per liter (47.25 cents). Meanwhile the price of diesel fuel is still at Rp. 5,500 per liter.
Translated by: Ramona Sofianne Dewi.
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