Fuel subsidy limits may increase January inflation 0.3%
The Jakarta Post, Jakarta | Wed, 12/01/2010 4:51 PM
The government’s plan to limit fuel
subsidies may contribute a one-off 0.3 percent to January’s
inflation rate if the government chooses to limit subsidies for all
private cars, a Central Statistics Agency (BPS) official says.
BPS chair Rusman Heriawan said fuel
contributed 3 percent to inflation.
The total subsidized fuel consumed by
private cars is 23 percent of the 60 million kiloliters of total
fuel. Fuel prices will increase by 44 percent, from Rp 4,500 to Rp
6,500 per liter.
“So, percentage wise, 44 percent
times 23 percent times 3 percent equals 0.3 percent of January
inflation. That will happen only if the policy is put into effect by
January 1 and the option taken is to limit fuel subsidies for private
cars, meaning all cars with black license plates,” Rusman said
Wednesday.
The government has another plan to
limit fuel subsidies that will only apply to cars built in 2005 and
later.
The government has not made a final
decision about which option will be chosen. (est)
