Energy and Mineral Resources Minister Sudirman Said in a working meeting with the Commission VII of the Parliament said the proposed cut followed the abolition of subsidy on Premium gasoline as a result of oil price fall.
The government did not change the volume of subsidized liquefied petroleum gas (LPG) in its proposal from the level of 5.76 million tons in 2014.
"I think the volume is the same , therefore, no need for additional volume," Sudirman said.
However, there is a significant increase in the subsidy on biofuel proposed for 2015, he said.
"The subsidy on biodiesel is raised from Rp15,000 to Rp5,000 per liter in 2015 and that on bio-ethanol from Rp2,000 to Rp3,000 per liter," katanya.(*)
Editor: Heru Purwanto
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