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Govt changes mind, leaving subsidized fuel prices unchanged
The government has decided that subsidized fuel prices will stay the same until the end of September, after an initial plan to increase them
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Pertamina gas station attendants fill packaged fuel into a home-bound traveler's car at a rest area in East Brebes -Pemalang toll road, Tegal, Central Java, on June 22. (Antara/Oky Lukmansyah)
T
he government has decided that subsidized fuel prices will stay the same until the end of September, after an initial plan to increase them.
A ministerial decree from the Energy and Mineral Resources Ministry signed on Wednesday stated that starting July 1, prices for subsidized gasoline with a research octane number (RON) 88, locally known as Premium, will stay at Rp 6,450 (45 US cents) per liter.
Meanwhile, subsidized diesel, known as Solar, will be Rp 5,150, and kerosene will be Rp 2,500. These are the same prices as those determined in April.
President Joko "Jokowi" Widodo said that the government had initially predicted that it would have to raise fuel prices, but then changed its mind.
"Based on our calculations, we have determined that there will not be any fuel price hikes next month in July. We initially calculated a possible rise, but after calculating it again, fuel prices will not go up," he said during the opening of a plenary Cabinet meeting at the State Palace in Central Jakarta on Thursday.
Global crude oil prices have been largely stagnant despite initial optimism that it would reach the $60 per barrel mark this year after a sudden price crash almost two years ago.
Benchmark West Texas Intermediate (WTI) traded crude at $42.56 per barrel on Thursday afternoon, while fellow benchmark Brent settled at $44.91. (ags)
