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Jakarta Post

Govt may end fuel subsidy next year

  • Aditya Suharmoko

    The Jakarta Post

Jakarta   /   Wed, November 19 2008   /  11:16 am

The government may entirely end subsidizing fuel prices next year by adjusting subsidized prices to market prices, but up to a certain limit, a senior Finance Ministry official says. "In the future, we expect (subsidized fuels) to follow (the market prices) automatically up to certain ceilings (prices)," the ministry's head of fiscal policy, Anggito Abimanyu, told reporters on Monday. "If prices go up, we will cap them to a maximum ceiling. But we have not determined the benchmark prices yet," Anggito said, adding the government would start subsidizing fuels if the prices surpassed these limits. The plan was expected to ease the government's burden in financing fuel subsidies, with subsidy allocations depending on the volatility of world crude oil prices, he said. On Tuesday, Brent North Sea Crude was sold at US$52.23 per barrel, while l...