BBM Prices to be Raised in May

Jakarta (Antara) - The government has set a date for the price of oil fuels to be raised but it has yet to decide the levels of the prices. The government is considering to set the new prices of premium gasoline and automotive diesel oil (ADO) at Rp6,000-Rp7,000 per liter for private cars , up from Rp4,500 at present to be effective in May. Energy and Mineral Resources Minister Jero Wacik said after a meeting with all provincial governors, the government has yet to set the prices . President Susilo Bambang Yudhoyono is to announce one of a number of options the government would take to cut swelling subsidy on oil fuel. Jero said if the government takes the option of raising the oil fuel prices for private cars starting May the government will save Rp21 trillion in subsidy. Almost all governors agreed on the option, he said, adding even some of the governors wanted to abolish the subsidy, allowing the price to be dictated by the market. He said in principle the government wants to redress the present system in which 77 percent of the subsidy goes to wrong places. (*)