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JAKARTA - The government will soon discuss with the House of Representatives (DPR) the results of its study on fuel oils, a minister said. Minister of Energy and Mineral Resources Jero Wacik said here Monday that the government had finished its study on fuels, which was requested by the DPR.
"We have completed a fuel oil roadmap based upon the request of the House and will soon hold a hearing with Commission VII on energy affairs," the minister said. But Jero was reluctant to reveal the results of the study, saying it should be first discussed with the House.
Oil and Gas Director General Evita Legowo also said that the study on fuel was finished, yet she admitted she had not received the results. She added that her side would begin to implement the government policy on the limitation of subsidized fuel oil consumption on April 1.
During a recent hearing with Minister Jero Wacik, the House`s Commission VII asked the government to conduct a study on three options with regard to its plan to reduce fuel oil subsidies, the limitation of consumption, premium gasoline-to-gas conversion and price hikes.
The government has assigned the Bandung-based Institute of Technology (ITB), the University of Indonesia (UI) and the University of Padjadjaran (Unpad) to carry out the study. The government had earlier prepared three scenarios, including raising the price of subsidized fuel oil for private vehicles by Rp500, Rp1,000 or Rp1,500 per liter.
The second scenario raises the possibility of increasing the price of subsidized fuel oil for public transport vehicles, including small-scale business vehicles, by providing cash back as compensation. In addition to these options, the government was also studying the possibility of providing fixed subsidies amounting to Rp2,000 per liter.
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