Based on the dual pricing system, the government is planning to increase subsidized premium gasoline and diesel oil prices for private cars but will maintain its full subsidy price for motorbikes and public transportation vehicles.
"It will not have a 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 a significant impact on inflationary pressures," Chief Economic Minister Hatta Rajasa said on the sidelines of a seminar in Bali last week.
The government so far has provided a subsidy of about Rp5,000 per liter of premium gasoline and diesel oil for vehicles, selling it at Rp4,500 per liter for both private and public transportation vehicles. The economic price for this fuel is estimated at Rp9,500 per liter.
However, the government is planning to introduce next month a two pricing system for subsidized gasoline and diesel oil, namely Rp4,500 per liter for public transportation vehicles and motorbikes and Rp6,500 per liter for private cars.
Data from state oil and Gas Company PT Pertamina show subsidized diesel oil consumption in the first quarter of 2013 reached 3.703 million kiloliters, or 5.2 percent above the quota of 3.52 million kiloliters. (*/DWA)
: Dewa Sudiarta Wiguna
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