President Joko Widodo was speaking with journalists at State Palace, announcing fuel price cut.
(photo source: Cabinet Secretary)
JAKARTA (rambuenergy.com) – Indonesian President Joko Widodo has a luxury on Friday to cut low-octane Premium fuel price again. Premium fuel price is cut to Rp6,600 per liter from Rp7,600 at present, while diesel fuel is slashed to Rp6,400 per litter.
The price will be effective from Monday (Jan. 19), the President announced.
The Energy and Mineral Resources Minister Sudirman Said told reporters that the government announced the price cut two days before the new price takes effective is to allow fuel stations (SPBUs) operators to offload their existing stock.
This is the second time since came to power, the Joko Widodo government decided to cut fuel price. On Jan.1, 2015, the government cut Premium fuel price to Rp7,600 per liter, while diesel fuel was cut to Rp7,250 per liter.
In mid November, the new government raised subsidized fuel price.
The government has decided to let fuel price to be determined by global oil price. The government also adopted a fixed subsidy system for subsidized diesel fuel, meaning that the price could move up and down, but the subsidy is fixed at certain value. (*)