Indonesian President Susilo Bambang Yudhoyono hinted on Monday the government would increase fuel prices to curb mushrooming subsidy in the state budget driven by the surging global oil prices.
"The issue is no longer about whether or not we will increase fuel prices. It is about how much bigger and what products are subject to the hike," the president said in a luncheon with senior editors of major Indonesian media at the Merdeka Palace here.
"Will it be 20 percent, 25 percent or 30 percent? And why?" he said.
The government allocates a huge subsidy in the budget to keep fuel prices artificially low, allowing the Indonesian people to buy among the cheapest gasoline in the world at 49 US cents per liter.
As the global oil prices are skyrocketing, the subsidy could reach as high as 125 trillion rupiah (some 13.6 billion dollars) this year, posing a major burden for the already cash-strapped government.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article