The Indonesian government has said it would possibly lower subsidized gasoline price in line with the movement of oil prices at global markets, a report said Thursday.

Crude oil has lately been trading at around 59 U.S. dollars a barrel on the New York and London markets, well down from its mid- year price levels of 70 dollars.

This means the global market price of gasoline is down close to that of Indonesia's medium-octane gasoline, which is sold at 4,500 rupiah (49 U.S. cents) a liter, reported major national newspaper The Jakarta Post.

"If crude prices are on the decrease like they are now, then the government will consequently lower the price of subsidized fuel as well," Energy and Mineral Resources Ministry director general for oil and gas Luluk Sumiarso was quoted as saying.

"If the market price goes below 4,500 rupiah, then the domestic selling price will follow, and the government will not have to subsidize it anymore," Luluk said.

The government will continue to cap gasoline at the 4,500 rupiah ceiling should crude oil prices rise again, subsidizing the difference.

The price decreases will not apply to automotive diesel or kerosene, which are subsidized at levels far lower than current market rates, Luluk added.

The government allocates 64.2 trillion rupiah (7 billion dollars) in fuel subsidy spending this year and another 61.9 trillion rupiah (6.8 billion dollars) for fiscal year 2007.

Indonesia bases its subsidized fuel and oil export prices on the Middle Oil Platts Singapore (MOPS) price, adding 14 percent in distribution and margin costs, which is paid to state oil and gas company PT Pertamina.

Source: Xinhua