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Indonesia mulls another hike in fuel price
www.chinaview.cn 2005-08-10 16:27:17

    JAKARTA, Aug. 10 (Xinhuanet) -- Indonesian Vice-President Jusuf Kalla said Wednesday the government is "very likely" to increase domestic fuel prices that could be the second hike this year afterthe average 29 percent rise imposed in March.

    "The hike cannot wait longer until January (2006) because the state budget is now in big trouble," the vice-president was quotedby the Detikcom online news service as saying.

    The government will take into account the global oil prices, the exchange rate of the rupiah and the fuel subsidy amount agreedby the government and the House of Representatives. "The combination of the three factors will determine percentage of fuelprice hike," Kalla said.

    With global oil prices hovering around 64 US dollars per barrel,Kalla said the budget shoulders huge burden.

    President Susilo Bambang Yudhoyono has warned that fuel subsidycould reach 120 trillion rupiah (12.2 billion US dollars) this year due to skyrocketing oil prices in international market.

    Indonesia, a member of OPEC, now depends on oil importation as domestic demand has surpassed its production capacity. Enditem

    

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