Govt to Control Price on Fuel Price Hike

Jakarta (Antara Bali) - The government will coordinate with various agencies, including Bank Indonesia (BI) to control commodity prices in the face of subsidized fuel oil price hikes, the fasting month of Ramadhan and the post-fasting Idul Fitri festivities.

It will carry out close coordination because the span of June, July and August is a period when commodity prices usually increase and boost inflation. In addition, the government will raise the prices of subsidized fuels and the automatic rise of electricity tariff rate.

However, the government calls on the people to remain calm as it will do its best and assure price stability where up to now seven basic commodity prices remain stable.

"We call on the people to remain calm. There is no need to hoard fuels," Minister of Energy and Mineral Resources Jero Wacik said over the weekend. He made the appeal ahead of the price increase of subsidized premium gasoline and diesel oil.

The House of Representatives (DPR) in its plenary session on Monday is expected to endorse the government proposed draft 2013 revised state budget, which includes a plan to increase subsidized fuel prices.

If the House approves the proposal on Monday, the government is likely to announce immediately the fuel price increase. The price of gasoline is likely to be raised from Rp4,500 per liter to Rp6,500 per liter and diesel fuel from Rp4,500 per liter to Rp5,500 per liter.

"We have targeted that the prices of subsidized fuel would have been raised this month (June). It should not be too late because we are facing the fasting month (in July)," Minister Jero Wacik said. (*/DWA)