Dual Fuel Pricing System to Trigger Chaos

Pekanbaru (Antara Bali) - The government's plan to impose a dual pricing system for subsidized fuels will create chaos among the people due to price disparity, Ediyanus Herman Halim, economist from State University of Riau (UNRI) said here on Thursday.

"The good solution to save state budget expenditures in this country is removing fuel subsidy," he said.

According to Adrianus, the previous regulation on the limitation of subsidized fuel consumption has not worked. It restricted industries vehicles to use subsidized fuel.

"The regulation did not work because there was no law enforcement and control on it," he said.

Ediyanus said the allocation of state budget for subsidized fuel could be diverted to developing infrastructures. (IGT)