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Government to announce cut in price of subsidized fuel today
Motorists refuel at a gas station in Central Jakarta
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Motorists refuel at a gas station in Central Jakarta. The government will disclose a plan to cut fuel prices.(JP/Jerry Adiguna)
The government will announce a decrease in the prices of subsidized fuel after a Cabinet meeting held in the State Palace this afternoon, according to Energy and Mineral Resources Minister Sudirman Said.
"There will be a Cabinet meeting in the afternoon; [the cuts] will be announced later," Sudirman Said in Jakarta on Wednesday.
He explained the new prices will take effect on Jan. 5 to give gas stations time to prepare, including by selling their current stocks.
"It needs a transition to avoid chaos. So perhaps the new prices will be effective on Jan. 5," he add.
Currently, the price of subsidized premium gasoline outside of Java, Madura and Bali is Rp 7,300 (49 US cents) per liter, subsidized diesel is Rp 6,700 per liter and kerosene is Rp 2,500 per liter.
Earlier, the director general of oil and gas, I Gusti Nyoman Wiratmadja Puja, said the government will cut the price of Premium by Rp 200 to Rp 300 per liter, while subsidized diesel will go down by more than Rp 500 in January 2016.
Referring to Energy and Mineral Resources Ministerial Regulation No. 4/2015, the government evaluates fuel prices every three months based on the latest update of the benchmark price. (bbn)(+)
