| Government Not Select Options Raise Fuel Prices |
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| Tuesday, 05 July 2011 00:00 | |||||||
Page 1 of 2 Government Not Select Options Raise Fuel PricesJakarta (ANTARA News) - The Ministry of Finance to make sure not to raise subsidized fuel prices and choose the option to control the consumption of fuel intended to keep the budget as well as the volume of quotas that have been defined in the state budget. "So the quota must be adjusted, if not controlled it can be high. For that is the main government program that subsidized fuel control. When asked about the price adjustment, we are at present no plan," said Finance Minister Agus Martowardojo after meeting with the Budget Agency House of Representatives in Jakarta on Monday. Finance Minister also confirmed, although the option to do adjustments in subsidized fuel allowed in the State Budget Law, but that option was never an option from the Ministry of Finance. "At this moment we do not have plans to raise fuel, but we understand that the law allows to adjust fuel prices," he said. He made sure the government will continue to coordinate to ensure that subsidized fuel will not exceed the volume of quota in the state budget amounting to 38.6 million kl and keep the subsidy is not burdened. "Control of fuel that will make our budget for the field of fuel can be maintained. So these initiatives actually been prepared since October 2010 and later will continue to be sharpened to be implemented so that we can control the posts of subsidies," said the minister. On the occasion, the minister explained to the House of Representatives Budget Agency, the realization of energy subsidies, especially for fuel in the first semester reached Rp41, 6 trillion from the target of Rp95, 9 trillion, up from last year's amount of Rp30, 2 trillion from the target of Rp88, 9 trillion. The minister said, due to higher realization due to the high realization of the ICP to May reached 110.4 billion U.S. dollars per barrel compared to last year's 82.2 U.S. dollars per barrel. "The high realization also caused due to an increase in the volume of subsidized fuel consumption, which until May reached 16.5 million kilo liters, or 42.8 percent of the budget ceiling or up 7.4 percent from the same period last year," he said. As for the prognosis of the second half of the fuel subsidy is estimated to be spending figures Rp79, 2 trillion that will be swollen for Rp120, 8 trillion or higher than the Budget target of Rp95, 9 trillion. "There is excess Rp24, 9 trillion because of the implications of increased ICP assumptions U.S. $ 80 per barrel to around 95 dollars per barrel, besides the volume of consumption is estimated at 38.9 to 40.5 million kilo liters," said the minister. (S034/S025)
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