"As long as there is no price hike the quota of fuel oils will continue to increase," Dito Ganinduto of the House of Representatives Commission VII said here on Sunday.
He was responding to a plan to raise the quota of subsidized fuels expected to hit a level of 41.3 million kiloliters, or two percent higher than the forecast of 40.49 million kiloliters set under the revised 2011 state budget.
As a matter of fact, the 40.49 million kiloliters included an additional quota of 1.89 million kiloliters from 38.6 million kiloliters set under the 2011 state budget.
Dito said if disparities between the prices of subsidized and non-subsidized fuels remained unsolved the quota of subsidized fuels approved by the House of Representatives would be exceeded no matter how much it would be.
"There is no other choice but to raise fuel prices to keep down the disparities," he said.
The option to control the distribution of subsidized fuels would not run effectively if the disparities between the prices of subsidized and non-subsidized fuels remained high, he said.
Asked about the inflation rate caused by the fuel price hike, he said it would not have a large impact on the inflation rate.
The inflation rate was expected to be low in 2011, he said.
Neither it would have a significant impact on the socio-economic life of the people, he said.(*)
(S012/H-NG/O001)
Editor: Ruslan Burhani
Copyright © ANTARA 2011
