Governors Agree To Control Use Of Subsidized Fuels

Jakarta, April 16 (ANTARA) - Provincial governors agreed to take part in the effort to control the use of subsidized fuel oils to be made by the government, chief economic minister Hatta Rajasa said. "They all agreed to let the government to decide about it and will implement whatever the decision would be," he said after meeting with them here on Tuesday. Hatta said the government would reduce the use of subsidized fuel oils by the well to do and extend the subsidy to the eligible ones. "The response is very positive and all agreed that subsidy must be controlled and reduced," he said. Hatta said he hoped the regional leaders would be ready to implement the government`s decision to reduce the fuel subsidy that would likely lead to a price increase. "We are still studying several scenarios and assumptions," he added. He assured that subsidy for public transports would remain and so the sector would not be affected by the price increase. Hatta said the government is ready to add more filling stations in regions to reduce the risk of illegal sale of gasoline and diesel oil to happen. Energy minister Jero Wacik meanwhile said that the price of subsidized gasoline might be increased to Rp6,500 to Rp7,000 per liter but this option still has yet to be approved by the President. He said the government would prepare the right form of compensation for the economically weak in exchange for the hike. He said he hoped the government would announce the option it would take by early in May at the latest. Coordinating minister for people`s welfare Agung Laksono meanwhile said that the government would increase social spending as a compensation for the hike. He said the compensation was needed to curb inflation, adding the plan to increase social spending would be put in the revised budget.