Reflection : Seeing is believing! http://thejakartaglobe.com/business/all-indonesia-to-pay-same-price-for-fuel-next-month/348852
December 22, 2009 Yessar Rosendar All Indonesia to Pay Same Price for Fuel Next Month Indonesian consumers will pay the same price for gasoline beginning next month no matter where they live, following the implementation of an Energy Ministry regulation requiring fuel distribution costs to be covered by the government. The government subsidizes fuel but consumers in different parts of the country pay different prices due to varying distribution costs. For example, in parts of Papua motorists pay as much as Rp 35,000 ($3.68) a liter because of high delivery costs. Beginning in January, everyone will pay Rp 4,500 a liter, said Hanung Budya, Pertamina's deputy director for marketing and business, on Tuesday. The new policy is intended to stimulate growth in isolated regions, he said. "When the price is the same, people can spend more on fuel." Hanung also said Pertamina is aiming to complete its kerosene-to-liquified petroleum gas (LPG) program next year as planned, resulting in 53 million households in 27 provinces shifting from kerosene to LPG. "We should complete the conversion program in 2010," he said. The program is intended to cut the amount the government pays in fuel subsidies as LPG is cheaper than kerosene. Currently, more than half of the Rp 50 trillion the government pays in fuel subsidies a year goes to kerosene. Hanung estimated the conversion program would reduce the amount the government paid in subsidies next year by Rp 10.4 trillion. However, Pri Agung Rakhmanto, an energy analyst at the Reforminer Institute, noted that the domestic supply of LPG was not sufficient. "We still have to import it next year," he said. Related articles Pertamina to Cease Imports of Petroleum In 2017 After Refinery Projects Are Completed 8:13 PM 14/06/2009 Indonesia to Allow Limited Competition to Start In Fuel Distribution 10:02 PM 23/10/2009 Pertamina to Pump $400m Into New Gasoline Stations 8:39 PM 16/12/2009 Iran Gasoline Import Bill to Rise $3.8 Billion 7:41 PM 02/11/2009
