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Energy and Mineral Resources Deputy Minister Widjajono Partowidagdo has proposed that the price of subsidized fuel be increased by Rp 1,000 (11 US cents) especially for private cars, in the hope of reducing fuel comsumption in 2012.

“In my opinion, for public vehicles and trucks, the price of Premium [a subsidized fuel] should stay at Rp 4,500 per liter. But for private car owners we should increase it by Rp 1,000 per liter, so it will be Rp 5,500,” Widjajano said Tuesday as quoted by kompas.com.

He explained that the private cars he meant were those that would find it difficult to afford non-subsidized Pertamax fuel.

More expensive vehicles, he said, should not be allowed to buy subsidized fuel.
“There must be discrimination. [Expensive] cars should use Pertamax,” he said.
He added that the idea would be discussed further with legislators and would be implemented as soon as it gains House approval.

“If it has been agreed on, we will implement it immediately. If necessary, we will see the fuel price increased for private cars by next month or next year,” he said.

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