Indonesia plans to limit subsidized fuel sales

After the Indonesian parliament blocked a government move to increase subsidized fuel prizes by 33% last April, the government said it will revert to an earlier plan to cut fuel subsidy costs. The plan was dropped after the government began to look at higher prices, which was actually a proposal to ban large private vehicles from buying subsidized fuel, based on the assumption that owners of such vehicles could afford to pay the full price of fuel for their cars. “It will apply to 88 RON gasoline, as 53% of private cars consume 88 RON gasoline,” said Evita Legowo, oil and gas director general of the Energy and Mines Ministry. “We will be starting in May on Java and Bali islands, as infrastructure in those islands has already been prepared,” she added, emphasizing that the maximum engine size which could be 1,300 cc or 1,500 cc, would be decided later. (April 13, 2012)