JAKARTA (Thomson Financial) - Indonesia's oil and gas company Pertamina has
set limits on subsidised fuel purchases ahead of the government's plans to hike
fuel prices, reports said Saturday.
In an announcement sent to petrol stations around the capital and several
other cities, Pertamina has limited retail purchases of gasoline and diesel fuel
to 75,000 rupiah ($8) for private cars.
Subsidised gasoline costs 4,500 rupiah per litre and diesel 4,300 rupiah.
Pertamina vice president Djaelani Sutomo told the Jakarta Post the move
aimed to prevent hoarding ahead of the price hike.
"We are doing this to control consumption, which has jumped significantly
since the government announced its plan to raise domestic fuel price," he said.
Indonesia announced its intention to raise fuel prices last week, with the
rising global cost of oil forcing the country to spend increasing amounts on its
multi-billion-dollar subsidy scheme.
The administration of President Susilo Bambang Yudhoyono says the move is
essential to cut back the ballooning cost of the subsidies, which outstrips
spending on social programmes and infrastructure.
The government is facing mounting opposition from the street as well as
parliament, where most parties have reportedly turned against the plan in a bid
to win favour with voters ahead of elections next year.
Indonesia last raised the fuel price by 126 percent in 2005, sparking
widespread street protests.
afp
zr
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|