Government maintains fuel subsidy
Alfian, The Jakarta Post, Palembang | Thu, 06/04/2009 7:50 PM
Despite a recent increase in crude oil prices, the government says it will not raise fuel prices, citing adequate budget for extra fuel subsidy.
"We are not considering increase of subsidized fuel prices. Our state budget has allocated additional subsidy if we really need it," Energy and Mineral Resources Minister Purnomo Yusgiantoro said Thursday in Palembang, the capital of South Sumatera.
Asked at what level of oil price the state budget could withstand the subsidy, Purnomo said the budget remained very strong to anticipate the increase of oil prices.
"Even last year when the crude oil prices skyrocketed to over US$140 per barrel, our state budget remained secure, let alone this time when the average crude prices stand at US$60 per barrel," he said.
High oil prices will increase state revenue from oil and gas industry, he said.
