LOWERING PREMIUM GASOLINE PRICE TO RP4,000/LITER POSSIBLE : OBSERVER

Jakarta, March 6 (ANTARA) - The world crude price in 2009 is predicted to remain around US$40 per barrel making it possible for the government to lower the domestic premium gasoline price to Rp4,000 per liter, an observer said.

"The crude price will remain at US$40 per barrel because the world economic recession is expected to worsen and the world economic slowdown will not trigger a drastic rise in demand for oil that will drive up its price," Kurtubi, an oil industry observer, said on the sidelines of a book launch here on Thursday.
He said Obama's economic stimulus had not yet shown any positive indications in terms of improvements in the US economy which were expected to help improve the world economy.
"There is no signal so far yet. And I think if the stimulus is implemented its impact will be felt only after 2010," he said.
For this purpose, he said, there is no reason for the government not to lower the domestic price of premium gasoline to Rp4,000 per liter.
He said that with the rupiah exchange rate against the US dollar at Rp11,000-Rp12,000, the premium price of Rp4,000 per liter was a non-subsidized figure.
Kurtubi said that the lowering of the premium gasoline price to Rp4,000 per liter would increase the people's purchasing power.
"The premium gasiline price cut will support the national economy as it will increase the people's purchasing power and boost domestic demand," he added.