JAKARTA (Jakarta Post): The government's plan to limit the sales of subsidized premium gasoline to public vehicles and motorcycles, and to sell a new type of gasoline to private cars in order to curb the rise in thefuel subsidy, has received approval from economic observers.
Economist Didik Rachbini said here Wednesday the government's plan in reducing the rise in the subsidy resulting from the surging crude oil prices in the world market was "creative", while oil industry observer Kurtubi said the government had done the right thing, but it should monitor its implementation.
"The government must do anything it can to stop the gasoline subsidy for private vehicles to save the state budget," Didik told The Jakarta Post.
Didik, who is also a member the House of Representatives (DPR)representing the National Mandate Party (PAN), said although the plan would need to be closely monitored, it would be better than raising the price of premium gasoline, currently sold to the public at Rp 4,500 per litter, with a subsidy of more than Rp 2,500 a litter.
The government said Tuesday that under the new plan, the government would limit sales of the highly subsidized gasoline to public vehicles and motorcycles.
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