"It will not have big impact because the prices of basic necessaries generally depend on public transportation, while fuel price for this kind of transportation is not raised. So, it will not have significant impact on inflationary pressures," Chief Economic Minister Hatta Rajasa said on the sidelines of a seminar here on friday.
He said that the subsidized fuel price hikes would only have impact on the middle income people who owned private cars and were actually financially capable.
The government is planning to raise the prices of subsidized premium gasoline and diesel oil for private cars from Rp4,500 to Rp6,500 per liter beginning May 2013.
Hatta said that even though it would not have much impact on inflation, supply of basic necessities should not run short and the prices of a number of products must be lowered. (IGT)
: I Gusti Ketut Agung Wijaya
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