Energy and Mineral Resources Minister Jero Wacik officially announced that the new fuel prices would take effect on Saturday.
'The new price for Premium fuel is Rp 6,500 ( 66 US cents ) per liter, up from Rp 4,500, and Solar diesel will cost Rp 5,500 per liter, also up from Rp 4,500 per liter,' Jero said in a press statement aired by
Metro TV on Friday night.
The announcement came four days after the House of Representatives passed the draft bill of the 2013 revised state budget into law in a plenary session in Jakarta on Monday, in which the government had
stated its fuel-price increase proposal.
Coordinating Economic Minister Hatta Rajasa, who attended the press conference, said the plan to raise fuel prices was meant to save the country's economy.
Following the new policy, as much as Rp 9.3 trillion will be allocated for temporary direct cash assistance ( BLSM ), which will entail payments of Rp 150,000 per month being distributed to 15.5 million low-income households in Indonesia for four months. ( hrl/dic )