Students scuffle with police during an anti-government demonstrationJAKARTA (AFP) — Indonesia said Friday it would raise its subsidised fuel prices by nearly 30 percent from Saturday in response to soaring global oil costs.
Long queues formed at petrol stations ahead of the announcement late Friday that prices would rise by an average 28.7 percent from midnight (1700 GMT) due to record oil costs that have sucked state money out of social programmes.
"Considering the rising global fuel price and the heavy burden of subsidies on the budget, we have decided to raise the fuel price. It is effective at 00:00 May 24," said energy minister Purnomo Yusgiantoro.
Indonesia announced earlier this month it was planning the hike to limit the impact of record world oil prices, which has blown out the government's multi-billion dollar fuel subsidy scheme.
It has outlined plans for direct cash transfers amounting to 14.1 trillion rupiah (1.5 billion dollars) to millions of poor families to ease the financial pain.
"The price of fuel in Indonesia is the lowest in the Asia region, even lower than in poor countries such as East Timor, Cambodia and Bangladesh. Even after the rise of 28.7 percent, our fuel price is still lower than East Timor, The Philippines, Thailand and Singapore," the economy ministry said in a statement late Friday.
The move means the price of premium gasoline and diesel fuel for transportation will be raised by 33.33 percent and 27.9 percent respectively to 6,000 rupiah (65 cents) and 5,500 rupiah per litre.
Earlier Friday, Indonesia said it may be forced to hike the cost of oil even further, despite widespread protests against the move.
Many ordinary Indonesians say higher fuel prices combined with the soaring cost of food will put an intolerable strain on family budgets.
Global crude oil prices reached record highs reached this week on concerns that supplies will not meet demand.
Long queues formed at petrol stations ahead of the announcement late Friday that prices would rise by an average 28.7 percent from midnight (1700 GMT) due to record oil costs that have sucked state money out of social programmes.
"Considering the rising global fuel price and the heavy burden of subsidies on the budget, we have decided to raise the fuel price. It is effective at 00:00 May 24," said energy minister Purnomo Yusgiantoro.
Indonesia announced earlier this month it was planning the hike to limit the impact of record world oil prices, which has blown out the government's multi-billion dollar fuel subsidy scheme.
It has outlined plans for direct cash transfers amounting to 14.1 trillion rupiah (1.5 billion dollars) to millions of poor families to ease the financial pain.
"The price of fuel in Indonesia is the lowest in the Asia region, even lower than in poor countries such as East Timor, Cambodia and Bangladesh. Even after the rise of 28.7 percent, our fuel price is still lower than East Timor, The Philippines, Thailand and Singapore," the economy ministry said in a statement late Friday.
The move means the price of premium gasoline and diesel fuel for transportation will be raised by 33.33 percent and 27.9 percent respectively to 6,000 rupiah (65 cents) and 5,500 rupiah per litre.
Earlier Friday, Indonesia said it may be forced to hike the cost of oil even further, despite widespread protests against the move.
Many ordinary Indonesians say higher fuel prices combined with the soaring cost of food will put an intolerable strain on family budgets.
Global crude oil prices reached record highs reached this week on concerns that supplies will not meet demand.
1 comment:
this year is sadness around the world that almost happen every where .even the nature are condem us also ,Do yuo all know about that the world is great things too much ,and uncontrol its.the bad area condem by storm or earth quake .
GOD HAD MIGHTY EYE AND TAKE CARE THEIR CHILDRENS .
Please we all are do good and kindness to each order to save earth and friendship our globe.
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