"It is not proper for the government to scrap fuel subsidies," Rizal Ramli said at a discussion here on Thursday.
He said the government did not have the right to pressure the public into consuming fuel oils according to their economic prices.
The purchasing power of the Indonesian people was different from that of other nations and that there was no reason to scrap fuel subsidies, he said.
"So nothing can compare," he said.
Rizal said consumers also did not need fuel oils with high octane.
The Indonesian premium subsidized gasoline had 88 octane, or higher than 83 octane in the US, he said.
What was more, roads in Indonesia also made it impossible for motorists to optimize the engine capacity of their vehicles with high octane, he said.
"(Forcing motorists) to switch to pertamax non-subsidized gasoline will only benefit operators of foreign gasoline stations such as Shell, Total and Petronas," he said.
Calls for the government to raise the prices of subsidized fuels have been mounting after global oil prices are hovering above US$100 a barrel.
Satya W Yudha of the House Commission VII recently urged the government to raise the prices of subsidized premium gasoline and diesel oil by Rp500 a liter.
The increase in the prices of fuel oils would help the government reduce a budget deficit as a result of soaring global oil prices, Satya W Yudha of the Golkar Party faction in the House said.
Under the State budget Law of 2011, the government is allowed to raise the prices of subsidized fuels if the average ICP in the past one year is 10 percent higher than the assumed oil price of US$80 a barrel.
According to the Energy and Mineral Resources Ministry, ICP averaged US$89.52 a barrel in the May 2010-April 2011 period.
ICP reached US$77.02 a barrel in May, US$75.27 in June, US$73.75 in July, US$75.97 in August, US$76.76 in September, and US$82.26 in October, US$85.07 in November and US$91.37 in December last year.
It rose to US$97.09 in January, US$103.31 in February, US$113.07 in March and US$123.36 in April this year.
The government and the House are scheduled to discuss the option of raising subsidized premium gasoline and diesel oil at the end of May amid rising global oil prices. (*)
Editor: Kunto Wibisono
Copyright © ANTARA 2011
