Govt Sets New Subsidized Fuel Prices On New Year's Day

Jakarta, Dec 31 (Antara) - The government has determined the new prices for premium and solar diesel fuels that will be effective from January 1, 2015. "The government feels that a `pass through` is needed in the society and a review in the policy on premium and solar diesel fuels to respond to the global oil price," Coordinating Minister for Economic Affairs Sofyan Djalil remarked here during a press conference on Wednesday. The new policy will set a revised price for the RON88 premium fuel at Rp7.6 thousand per liter from Rp8.5 thousand and Rp7,250 per liter from Rp7.5 thousand for solar diesel fuel. Under the new scheme, the subsidized oil prices are divided into three categories and will be evaluated by the government on a monthly basis. The government`s decision is based on the assumption that the Indonesian Crude Price (ICP) will be at US$60 per barrel and the rupiah`s exchange rate at Rp12,380 per US Dollar. In accordance with the new scheme, the government will remove the subsidy on the RON88 premium fuel but will still apply a subsidy of Rp one thousand for every liter of solar diesel fuel.