"So premium gasoline must slowly but surely be scrapped. This means that it will not be continued in the future."Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said he wants subsidized premium gasoline scrapped because it adds to subsidy burden in the state budget.
"So premium gasoline must slowly but surely be scrapped. This means that it will not be continued in the future," the minister said here on Thursday.
As part of efforts to cut fuel subsidy, pertamax gasoline would not be subsidized and be sold according to its market economic value, he said.
"Don`t subsidize pertamax because it must reflect its market value," he said.
He expressed hope that the Energy and Mineral Resources Ministry and the House of Representatives (DPR) Commission VII would soon agree to scrap subsidized premium gasoline to give certainty about the prospects of the state budget.
Moreover, subsidized premium gasoline this year had the potential to burden subsidy budget and affect fuel oil consumption quota of 38.6 million kiloliters due to the absence of government policy to limit the use of subsidized fuel, he said.
"I am deeply concerned about the quota of 38.6 million kiloliters. If the quota is surpassed it will no doubt burden the budget," he said.
There should be a bold measure to stem fuel consumption from outstripping the quota, he said adding Indonesia should follow China which had the gut to raise fuel prices in February and April.
(Uu.S012/HAJM/S012)
Editor: Priyambodo RH
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