Fuel prices to come down in January

JAKARTA. The government has announced that lower subsidized fuel prices will be announced next month after calculations for new subsidized diesel, gasoline and kerosene prices are completed.

"It's almost certain that fuel prices will be cut. After the previous cut in fuel prices in October, the next price cut will be in January. How much will the reduction be? We are calculating it," Sudirman Said stated during a press conference in Jakarta on Tuesday.

He further explained that the downward trend in global oil prices was the right time for the government to adjust fuel prices. He said it was impossible to implement immediately as the government needed time to determine adjusted prices for the three subsidized fuels.

"Now is a good time to cut the prices, but we cannot explain the figure [of fuel price adjustments] yet. I think it will be soon, in two or three days it will be decided," Sudirman added.

Referring to Energy and Mineral Resources Ministerial Regulation No. 4/2015, the government evaluates fuel prices every three months based on the latest update on the benchmark price.

Currently, the price of subsidized premium gasoline outside of Java, Madura and Bali stands at Rp 7,300 (49 US cents) per liter, subsidized diesel at Rp 6,700 per liter and kerosene at Rp 2,500 per liter.