Government still undecided about rising subsidized fuel oil prices

The government is still undecided about raising the prices of subsidized fuel oil although global oil prices hit a record high of US$100 a barrel, Finance Minister Sri Mulyani Indrawati said.
Speaking to the press after a limited cabinet meeting at the Finance Ministry, the minister said the government would stick to its current stand, namely to submit a revised 2008 state budget to the House of Representatives (DPR)`s budgetary committee.
"Until now the government`s stand remains the same as what it has stated in the revised 2008 state budget in which the most important function is applying the same prices. The amount of subsidy depends on the quantity of fuel consumed," she said.
Asked what steps the government would take if the global oil prices hovered over US$100 a barrel, she said it would only carry out its policies in accordance with the revised 2008 state budget agreed upon by the government and the House.
Commenting on the continued increase in global oil prices, she said the average annual oil price forecast for this year was US$80 a barrel. Therefore, the government`s proposal to change oil price assumptions in the revised 2008 state budget to US$83 a barrel would likely be approved.
(http://www.antara.co.id/en/arc/2008/2/21/govt-still-undecided-about-raising-subsidized-fuel-oil-prices/)