Deputy Minister of Energy and Mineral Resources Widjajono Partowidagdo said on Monday that the three scenarios include raising the price of subsidized fuel oil for private vehicles by Rp500, Rp1,000 or Rp1,500 per liter.
He added that the government is also discussing the possibility of raising the price of subsidized fuel oil for public transport vehicles, including small-scale business vehicles, by providing cash back as compensation.
"If the increase is Rp1,000 per liter, the cash back will be as much as that amount," he said.
To give cash back controlling cards would be needed.
It is not too difficult to provide the controlling cards, he said.
He said though the price hike will not apply to motorcycles under this scenario, the fuel price will be raised. However, the increase will not be as high as that of other vehicles.
In addition to these options, he said the government is also studying the possibility of providing fixed subsidies amounting to Rp2,000 per liter.
The House of Representatives (DPR) Commission VII earlier asked the government to study the possibility of fuel oil price hikes as one of the options to limit the use of subsidized fuels.
The government has appointed a consortium consisting of the Bandung Institute of Technology (ITB), University of Indonesia (UI) and Padjadjaran University (Unpad), along with the Oil and Gas Institute of the Energy and Mineral Resources Ministry, to conduct the study according to the DPR`s request.
The result of the fuel oil study is expected to be ready this week. The government plans to discuss it with the House Commission VII at the end of February.
(T.K007/S012/INE/A014)
Editor: Priyambodo RH
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