Another delay for fuel subsidy cuts?

Energy and Mineral Resources Minister Jero Wacik hinted that the government would likely to delay its plan to cut the fuel subsidy on April 1, citing its prolonged deliberations over the 2012 State Budget.

Jero insisted that the policy to reduce fuel subsidies, including telling people to switch from heavily subsidized fuel to gas, could not be done in haste.

“How can we proceed quickly with the fuel-to-gas conversion program while the fuel converters are not available yet in the market? This scheme is unlikely to be implemented on April 1, pending the deliberation of the 2012 State Budget Law,” Jero said on Tuesday, as quoted by kompas.com.

Jero said the government was not ready to implement the fuel-to-gas conversion policy because the 2012 State Budget Law, which is expected to regulate subsidized fuel cuts, is still being deliberated.

According to Jero, the easiest way to overcome this obstacle is to raise fuel prices, even though the option is not mentioned in the bill.

According to Jero, the government and House should revise some articles of the law that prohibit increases in the price of fuel.

The government has come up with three options to reduce fuel subsidies: providing subsidies to motorcycles and public transportation vehicles, fuel-to-gas conversion, and fuel price increases. (dhe)