"With subsidized fuel consumption growing 9 percent a year, subsidized fuel consumption this year has the potential to reach 48 million kiloliters, exceeding the government-set target of 46.01 million kiloliters," Pri Agung Rakhmanto said here on Wednesday.
The 2013 subsidized fuel consumption will consist of 29.2 million kiloliters of premium gasoline, 1.7 million kiloliters of kerosene, and 15.11 million kiloliters of diesel oil, he said.
The government still has no plan to raise the prices of subsidized fuel this year, he said.
He predicted the Indonesian crude price (ICP) will be higher than the assumed US$100 a barrel. Therefore, the government will opt to raise subsidy rather than to increase the prices of subsidized fuels, he added.
"Under the 2013 state budget, the fuel subsidy has been set at Rp193.8 trillion consisting of subsidy in the current year worth Rp190.3 trillion and reduced subsidy in 2011 worth Rp3.5 trillion. Of the total, Rp140.46 trillion will be allocated for fuel and bio-fuel subsidy, Rp26.45 trillion for LPG subsidy and Rp17.26 trillion for value added tax on assumption that the prices of subsidized fuels are not increased," he said.
He said the government will unlikely raise the prices of subsidized fuels this year.
"Because of political considerations ahead of the 2014 presidential election the prices of subsidized fuels will not be raised. This political factor causes the government to pay less attention to fiscal calculation," he said.
The prices of subsidized fuels were last raised in 2008 but were later lowered.
The prices of subsidized gasoline and diesel oil will remain unchanged at Rp4,500 a liter, well below the price of non-subsidized fuels sold at Rp9,000 a liter in Jakarta and environs.
(T.KR-IAZ/S012/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2013
