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Govt to leave fuel prices unchanged in September
The government has decided to keep fuel prices unchanged in September despite the publicâs demands for a price cut following the current slump in global oil prices, an official has said
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he government has decided to keep fuel prices unchanged in September despite the public's demands for a price cut following the current slump in global oil prices, an official has said.
The Energy and Mineral Resources Ministry's oil and gas director general, I Gusti Nyoman Wiratmaja Puja, said recently that the decision was made to maintain the stability of the Indonesian economy.
'Another consideration is to reduce the losses suffered by state oil and gas company PT Pertamina, which is responsible for the distribution and the supply of fuel within the country,' he said as quoted by Antara news agency on Friday night.
Earlier, Pertamina claimed to have suffered a potential loss of Rp 12 trillion (US$850 million) during the first seven months of this year as it had sold gasoline below the economic price level.
Therefore, as of Sept. 1, the price of Premium fuel will remain at Rp 7,400 per liter in Java, Madura and Bali and at Rp 7,300 outside those areas. Meanwhile, the price of subsidized diesel will remain unchanged at Rp 6,900 per liter as will kerosene at Rp 2,500 per liter.
The next price changes will be determined by taking into account the country's social and economic conditions, Wiratmaja said.
AFP reported that crude fell below $40 a barrel earlier this week as investors worried that China's slowing growth and stock market rout would grind the global economy to a standstill. (ika)
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