Indonesia plans to increase fuel, power prices

An attendant at a fuel station in Nusa Dua, Bali, Indonesia (Photo: wsj.com)

Jakarta (VNA) - Indonesian Minister of Energy and Mineral Resources Arifin Tasrif has announced that his government plans to raise prices on subsidised fuels to reduce fiscal tensions.

The increase will impact the price of Pertalite gasoline, Solar diesel and 3-kg liquefied petroleum gas canisters. The subsidised fuels are being widely used in lower income households and businesses.

Arifin said that the ministry will keep a close watch on the conflict in Ukraine, as its prolongation can lead to a rise in oil prices, thus imposing a pressure on the State budget.

In addition, the Indonesia Government also announced its plan to raise the price of electricity.

According to Arifin, in the short term, the electricity tariff adjustment plan could help the state budget save from 7 trillion rupiah (487.75 million USD) to 16 trillion rupiah in 2022 alone./.

VNA