Govt cuts fuel price, electricity tariff

President Susilo Bambang Yudhoyono announced Monday that the government would lower the price of gasoline and diesel fuel to Rp 4,500 (40 US cents) per liter beginning Thursday.

The president also announced a 10 percent cut to public transportation fares and an as yet to be specified cut to electricity base tariffs.

"The cut of the electricity tariff is to encourage the lowering of the price of basic necessities because it will cut production costs," Yudhoyono said in his office on Monday, after a closed cabinet meeting, according to Antara.

Yudhoyono said he expected the cut would lower beef prices to Rp 50,000 per kilogram from the currently Rp 62,000.

"The price of meat depends on market mechanisms, but the government encourages lower prices through these policies," he said.

The government also released an incentive scheme to lower the price of cooking oil from Rp 10,000 to Rp 7,000 per liter and will provide a special allocation of cooking oil, at Rp 6,000 per liter, to the poor.

Yudhoyono said the government was still discussing lowering milk and medicine prices. "Kerosene however will remain at Rp 2,500 per liter," he said.

The cabinet meeting was attended by Vice President Jusuf Kalla, Coordinating Minister for Political, Legal and Security Affairs Widodo A.S., Acting Coordinating Minister for Economic Affairs Sri Mulyani, Trade Minister Mari Pangestu, Energy and Mineral Resource Minister Purnomo Yusgiantoro, Industry Minister Fahmi Idris and Maritime Affairs and Fisheries Minister Freddy Numberi. (dre)