Jakarta (ANTARA News) - The government has been too reactive to world crude price hikes while it is unable to properly take into account the negative implications of its energy policies, an opposition party legislator said.

"The government`s reactive options are feared to create negative implications on premium gasoline consumers, refueling premium gasoline stations (SBPUs) and state-owned oil and gas company Pertamina," Bambang Wuryanto, secretary of the Indonesian Democratic Party-Struggle (PDIP) faction in the House of Representatives said here on Friday.

Earlier, the government has shown its reactions to the world crude price which rose to US$100 per barrel and caused the country`s fuel oil (BBM) subsidy to increase from the estimated Rp126 trillion to Rp198 trillion in 2012.

The government, therefore, was planning to implement its program to cut subsidized premium gasoline consumption.

Beginning on April 1, 2012, all private cars are no longer allowed to consume subsidized premium gas but Pertamax (non-subsidized fuel).

"This will put a burden on the owners of private cars because they will most likely not have enough savings to purchase pertamax," Bambang said.(*)

Editor: Heru Purwanto
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