"The government will make another effort to reduce fuel consumption."
Jakarta (ANTARA News) - The government is reviewing its subsidized fuel price increase option to overcome fuel subsidy that would burden the 2013 state budget budget.

Energy and Mineral Resources Minister Jero Wacik said here on Friday that fuel price increase should be the last option if other options to rescue the budget from fuel subsidy burden are not reached.

"The increase in fuel prices to be the last option, when other options do not significantly work as planned, but cause burden to the national economy," he said.

Another option offered is fuel saving and consumption restriction program, Jero said.

However, Jero was reluctant to explain details of the fuel price increase option, particularly with regard to value of price increases and the time when it would be implemted.

"Please be patient, right now we are studying options and making calculations on the option. Yet, whatever decision it will make the government always gives priorities to the people and the poor," he said.

Economically fuel price is should be raise, Jero said.

However, the policy with regard to fuel is not a matter of economy only but also of social and effect on poverty.

"This is actually a serious consideration by the government. We cannot be careless and therefore the rise in fuel prices is the last option," he said.

The minister made the statement is only one day after he had made public that the government had no plan to raise subsidized fuel prices.

"The government will make another effort to reduce fuel consumption," he said here, Thursday (14/3).

Jero said that in 2012, the House has rejected the government`s proposal to increase fuel prices, causing subsidies to swell.

In the 2013 State Budget, fuel subsidies are set at Rp193, 8 trillion with a fuel volume of 46 million kiloliters. Indonesian crude price is 100 US dollar per barrel and the US dollar exchange rate is Rp9.300.

However, these assumptions are predicted to miss the target and the subsidy will increase.
(Uu.A050/A014)

Editor: Priyambodo RH
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