JAKARTA: Indonesia said on Tuesday that it is considering raising fuel prices or lowering the current subsidy to private vehicles, in anticipation of rising global oil prices.
"The government is suggesting two options: raising the subsidised fuel price by Rp 1,500 (17 cents) per litre or giving a fixed subsidy of not more than Rp 2,000 (22 cents) per litre," Deputy Energy Minister Widjajono Partowidagdo told reporters.
The options will be submitted to parliament for approval in the next few days and the decision is expected to be made by the end of March, he added.
Under the current government subsidy scheme, private car and motorcycle owners are allowed to buy fuel at 4,500 rupiah per litre.
Without the subsidy, private motorists would have to buy a higher-octane fuel, priced at above 8,000 rupiah.
The government last raised the price of subsidised fuel in May 2008 by an average of 30 percent to 6,000 rupiah per litre.
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