ID :
45732
Sun, 02/15/2009 - 21:25
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Shortlink :
https://www.oananews.org//node/45732
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GOVT NOT TO CHANGE PRICE OF SUBSIDIZED FUEL OILS
Jakarta, Feb 15 (ANTARA) - Finance Minister Sri Mulyani Indrawati said here on Sunday that the government would maintain the current price of subsidized fuel oils although they were already below the economical level.
"If the current price of Indonesian crude is US$44.3 per barrel and the rupiah exchange rate standing at Rp11,000 against the US dollar the current price of premium gasoline of Rp4,500 per litre is already below the economical price, likewise that of the diesel oil," she said at the Office of Taxation Directorate General here.
The minister said the government would maintain the current price considering that the global economic crisis would still continue.
The current global economic crisis has made the government unable to change the fuel price and therefore it has decided not to change it with regard to maintaining national economic stability and certainty.
"Considering the continuing risks that may affect national economy we feel we need to safeguard the situation so that economic activities will continue to run significantly," she said.
She said another reason for maintaining the current fuel price was the rising tendency of the world crude price which rose from around US$33 per barrel in January to US$41. On average in February (until February 13) the price reached US$44.3 per barrel while the rupiah exchange rate fluctuated between Rp11,000 and Rp12,000 against the US dollar.
"The fuel price for February will remain not because the government wants to make profit but to safeguard the national economy as a result of global uncertainty and in anticipation of oil price uncertainty," she said.
She said the decision not to cut the fuel price was also aimed at maintaining the buying power of the public and economic players so that the real sector would continue to be active and making the public buying power go parallel with their income level.
"The price will be made stable as long as possible although there will be general elections this year," she said.
The minister said she predicted there would not be a surplus income from the sales of subsidized fuel oils in February like in January as the surplus has reached Rp1.1 trillion. ***
"If the current price of Indonesian crude is US$44.3 per barrel and the rupiah exchange rate standing at Rp11,000 against the US dollar the current price of premium gasoline of Rp4,500 per litre is already below the economical price, likewise that of the diesel oil," she said at the Office of Taxation Directorate General here.
The minister said the government would maintain the current price considering that the global economic crisis would still continue.
The current global economic crisis has made the government unable to change the fuel price and therefore it has decided not to change it with regard to maintaining national economic stability and certainty.
"Considering the continuing risks that may affect national economy we feel we need to safeguard the situation so that economic activities will continue to run significantly," she said.
She said another reason for maintaining the current fuel price was the rising tendency of the world crude price which rose from around US$33 per barrel in January to US$41. On average in February (until February 13) the price reached US$44.3 per barrel while the rupiah exchange rate fluctuated between Rp11,000 and Rp12,000 against the US dollar.
"The fuel price for February will remain not because the government wants to make profit but to safeguard the national economy as a result of global uncertainty and in anticipation of oil price uncertainty," she said.
She said the decision not to cut the fuel price was also aimed at maintaining the buying power of the public and economic players so that the real sector would continue to be active and making the public buying power go parallel with their income level.
"The price will be made stable as long as possible although there will be general elections this year," she said.
The minister said she predicted there would not be a surplus income from the sales of subsidized fuel oils in February like in January as the surplus has reached Rp1.1 trillion. ***
