Minister expects subsidized fuel price hike in April
The Jakarta Post, Jakarta | Thu, 02/23/2012 9:17 PM
Agus Martowardojo (JP)Finance Minister Agus Martowardojo said on Thursday the government would increase subsidized fuel prices, which will take effect in April, pending approval from the House of Representatives.
The government would submit the revised state budget to the House in early March.
“The new policy can be applied 30 days from the submission date,” he said after a meeting at the Energy and Natural Resources Ministry in Jakarta.
Agus refused to elaborate on what the new prices would be.
“[We’ll announce the new prices] after we meet with the House,” he said.
House energy commission member Satya W. Yudha said that if the government hiked the subsidized fuel prices by Rp 1,000 (US$0.11) the state could save up to Rp 38 trillion.
“If the government raises the prices by Rp 1,500, it could save up to Rp 54 trillion,” he said as quoted by tempo.co, adding that the funds saved should be used properly.
The government had planned to apply a controversial mechanism limiting the use of subsidized fuels, a proposal which received mixed responses from the public over its applicability. (swd)
