JAKARTA - Minister of Energy and Mineral Resources, Purnomo Yusgiantoro, on Wednesday assured that the government will not raise prices of subsidized fuel despite a surge in global crude oil prices. "So far, the government has not thought of raising the prices of subsidized fuel oil," said Purnomo after meeting President Susilo Bambang Yudhoyono at the presidential office.
Crude oil prices on the global markets soared above US$ 90 per barrel in recent days amid tensions between Turkey and Kurdish rebels in northern Iraq as well as harsh penalties from the US against Iran - the worlds fourth largest oil producer. Purnomo said that rapidly increasing global crude oil prices would have no impact on the oil and gas revenues for Indonesia this year. They would instead raise state revenues. "But in 2008 we will keep monitoring the impact of global crude prices on the state budget as the prices would still increase," he said.
Speculations that state oil and gas firm Pertamina was about to raise domestic fuel prices if global prices continued to rise were firmly dismissed by him. "To date, 35 percent of national oil consumption or needs equivalent to one million barrels is non-subsidized fuel and 65 percent subsidized fuel," he said. He also said that the prices of non-subsidized fuels were to be determined by Pertamina while the government only holds responsibility for subsidized fuels.
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JAKARTA - Minister of Energy and Mineral Resources, Purnomo Yusgiantoro, on Wednesday assured that the government will not raise prices of subsidized fuel despite a surge in global crude oil prices. "So far, the government has not thought of raising the prices of subsidized fuel oil," said Purnomo after meeting President Susilo Bambang Yudhoyono at the presidential office.
