"We will present options for the price hike starting from Rp500 to Rp2,000 per liter, with all their impacts," the vice minister said.Jakarta (ANTARA) - Vice Minister of Energy Widjajono Partowidagdo has suggested what he believes are ideal figures for the hike in the price of subsidized gasoline on Monday.
"Ideally, the rise should be between Rp1,000 and Rp1,500," he said.
The government plans to raise the price of subsidized gasoline as a means of reducing the increasing subsidy burden on the 2012 national budget following increasing crude prices.
The plan is scheduled to be discussed with the House of Representatives (DPR) on Tuesday, Feb 28.
Widjajono said the government has prepared options for the price hike to present to the DPR.
"We will present options for the price hike starting from Rp500 to Rp2,000 per liter, with all their impacts," he said.
He noted that the era of cheap gasoline has ended because Indonesia has now become a net importer, although it also remains an oil producer.
He said if the price of gasoline is raised, the government will not implement its plan to restrict the use of subsidized gasoline.
The law for the revised budget is likely to mandate a price increase, instead of restrictions on gasoline consumption.
"However, that would be impossible if all official cars are restricted to use subsidized gasoline, while not all private cars are required to shift to non-subsidized oil," he said.
The deputy minister also said that the program of oil to gas conversion would be continued.
He added that he believed gas use for transportation would continue to develop after the price of gasoline is increased.(*)
Editor: Heru Purwanto
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