The government is considering to set the new prices of premium gasoline and automotive diesel oil (ADO) at Rp6,000-Rp7,000 per liter for private cars , up from Rp4,500 at present to be effective in May.
Energy and Mineral Resources Minister Jero Wacik said after a meeting with all provincial governors, the government has yet to set the prices .
President Susilo Bambang Yudhoyono is to announce one of a number of options the government would take to cut swelling subsidy on oil fuel.
Jero said if the government takes the option of raising the oil fuel prices for private cars starting May the government will save Rp21 trillion in subsidy.
Almost all governors agreed on the option, he said, adding even some of the governors wanted to abolish the subsidy, allowing the price to be dictated by the market.
He said in principle the government wants to redress the present system in which 77 percent of the subsidy goes to wrong places.
The oil fuel subsidy is enjoyed more by rich people rather than low income consumers.
Poor people hardly need the subsidized premium gasoline, which is used mainly as car fuel.
Earlier, the oil fuel director of the downstream oil and gas regulating agency Djoko Siswanto said 55 percent of around 5,000 units of fuel filling stations all over Indonesia will sell subsidized premium gasoline at a price of Rp4,500 per liter and 45 percent selling the same type of fuel at a price of Rp6,500 per liter.
Meanwhile 90 percent of the ADO filling station will sell the fuel at a price of Rp4,500 per liter and the remaining 10 percent to sell it at a price of Rp6,500 per liter.
Meanwhile 34 of the fuel filling stations will sell premium gasoline with price of Rp4,500 and Rp6,500 per liters in area where there is only one filling station.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
