GOVT ANNOUNCES FURTHER CUTS IN GASOLINE, DIESEL OIL PRICES

Jakarta, Jan 12 (ANTARA) - President Susilo Bambang Yudhoyono announced on Monday another cut in the prices of premium gasoline to Rp4,500 from Rp5,000 a liter and of diesel oil to Rp4,500 from Rp4,800 a liter effective Jan 15.
"This means that the prices of premium gasoline and diesel oil have fallen by 25 percent and 18.2 percent each since December 2008. Meanwhile, the price of kerosene remains unchanged at Rp2,500 a liter," he said after a limited cabinet meeting here.
Yudhoyono also announced a cut in electricity basic tariff (TDL) for industries by reducing the principal tariff during the peak load.
"Hopefully, the decline in TDL will encourage a shortfall in the prices of goods and services as it will reduce the production costs of certain industries. We hope the cut in TDL will later lower the unit prices of goods sold to the public," he said.
The head of state said the cut in fuel prices would be followed by a 10 percent reduction in the transport fares set by the central government.
"The cut in transport fares will begin to take effect also on January 15," he said.***2***