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House factions differ on gasoline restriction plan JAKARTA - Several political party factions in the House of Representatives (DPR) differ with regard to the government`s plan to restrict consumption of subsidized gasoline.

Commission VII member from the Prosperous Justice Party (PKS) Achmad Rilyadi said here on Wednesday all parties were supposed to adhere to Law Number 22 of 2011 on the 2012 National Budget that mandates limiting gasoline consumption as of April 1, 2012.

"All parties including the government and the DPR must adhere to the Law that we have all agreed upon," he said. The Commission VII plans to meet with Energy Minister Jero Wacik on Thursday to decide whether the government`s plan would be approved or not.

The Commission VII also would decide whether it would opt for a price hike or restricting the use of gasoline. Achmad said the PKS faction would firmly reject the option of a price hike at the meeting. "The option of price hike will hurt the people and industries," he said.

Commission VII member from the Golkar Party, Bobby Rizaldi, meanwhile said that his faction prefers raising the price rather than restricting consumption. "Raising the price is more realistic for now," he said.

It was even more realistic as the crude price was expected to go up in line with the escalation of tension in the Strait of Hormuz, in the Middle East and an embargo on Iranian oil by Europe, he said.

He admitted the option of a price hike would require a change of the law that had mandated otherwise. "But, a revision of the law is possible and it will not be a problem. It can be done through the issuance of a Perppu (government regulation in lieu of law)," he said.

He said the Golkar Party faction believed that the infrastructure for implementing the restriction, especially the conversion from gasoline to ga, was not yet ready. "If the fuel consumption limitation plan is pushed through, it will cause confusion," he said.

The government plans to implement the restriction program as of April 1, 2012 starting from Jakarta and followed by other cities until 2014.


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Related blog entries (category 'Politics') Tags: doubts, decision, cut, subsidy, fuel


Posted in Politics @ 26 January 2012 00:54 CET by Blog Bot · 'Blog' RSS feed · permalink






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