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Gas Prices to Reduce on December 1, 2008

Modest Cut at Gas Pumps Applies Only to Premium Gas.


Bali News: Gas Prices to Reduce on December 1, 2008
Click Image to Enlarge

(11/10/2008)

Indonesia's Coordinating Minister for the Economy Sri Mulyani has announced that the price of subsidized premium gasoline will be cut by Rp. 500 (US$0.05), effective December 1, 2008.

Currently, a liter of premium gasoline costs Rp. 6,000 (US$0.54) which will become Rp. 5,500 (US$0.495) per liter following the scheduled price reduction.

While the government cites the drop in world-wide crude oil prices as prompting the price cut, more cynical observers point to an election year in 2009 as an equally compelling reason for the decision to lower gasoline prices at this time.

Prices for diesel and kerosene will remain unchanged.

The government has provided fuel subsidies amounting to Rp. 130 trillion (US$11.7 billion) thus far in 2008.


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