"The plan will most likely be put on hold in view of the current situation."Jakarta (ANTARA News) - The recent high global oil prices may become one of the reasons to postpone the government`s plan to limit the use of subsidized fuels which was originally scheduled to be implemented as of April, a minister said.
"The plan will most likely be put on hold in view of the current situation," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Thursday.
He said the global oil prices which recently reached a level of US$100 a barrel due to the Middle East crisis might raise the price of non-subsidized fuel Pertamax and if the use of subsidized fuel was limited many motorists would fearfully be reluctant to switch to Pertamax.
For its part, the government was waiting for the results of a study conducted by a team of officers on the impact of limited use of subsidized fuels, he said.
"The high oil prices may increase spending on Pertamax. The other assumptions will later be adjusted to the results of the study to see if there is distortion," he said.
After all, he said the imminent postponement of the plan to limit the use of subsidized fuels was an option the government still had to discuss with the House of Representatives (DPR).
"These all suggest that the more we are prepared the better will be. This means that the postponement is just an option. The decision will depend on the results of our discussion with the DPR," he said.
He also said the government also still had no plan to change the assumed oil price and production in the 2011 state budget despite the recent increase in global oil prices.
"If the revision is inevitable it will be made only in the second semester and now is still March," he said.
(Uu.S012/HAJM/F001)
Editor: Priyambodo RH
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