REPUBLIKA.CO.ID, JAKARTA - Indonesian government to raise fuel prices by 45 percent for private cars. Minister of Energy and Mineral Resources Jero Wacik announced it after held a general meeting with all governors in Jakarta on Tuesday.

Premium would be available for motorbikes and public transportation vehicles at it's current price 4,500 IDR per liter, while a higher price would be applied to privately owned cars. "Premium gasoline and diesel fuel will cost 6,500 IDR to 7,000 IDR per liter for private cars," Wacik said.

Subsidized fuel costs 4,500 IDR per liter in Indonesia now, about half of non subsidized price. Wacik said that by raicing the fuel prices government could save up to 21 trillion IDR to national budget. President will have the final words on this issue in May.

Head of BPH Migas, Andy Noorsaman Sommeng explained that premium with 4,500 IDR per liter would be distributed only in 55 percent of gas stations in Indonesia, while 45 percent would cost higher. For certain condition, government still sells subsidized fuel as there are 34 remote areas and each only has one gas station. 

"Diesel fuel cost 4,500 IDR per liter will be distributed in 90 percent of gas stations in Indonesia, while 10 percent will cost higher," he explained about two prices policy.

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