Govt maintains fuel prices

The government has decided not to alter the current price of Premium gasoline, diesel or kerosene, according to an official statement released Saturday.

Spokesman of the Energy and Mineral Resources Ministry Sutisna Prawira stated in the release that a decision had been made on Friday to maintain domestic prices of Premium gasoline at Rp 4,500 (38 US cents) per liter, diesel at Rp 4,500 per liter and kerosene at Rp 2,500 per liter, as set on Jan. 15.

The government, the statement said, acknowledged that there has been an increase in the global price of crude oil and a decrease in the value of the rupiah against the US dollar in the past month, but has decided not to alter the price of fuel.

The government has cut the fuel price three times in the past few months, following falls in global crude oil prices.

Critics have said that the government policy changes have been exploited to boost President Susilo Bambang Yudhoyono’s popularity ahead of the presidential election in July, so as to claim credit for what could be attributed to the impact of the global economic downturn. (dre)