Government finally increase fuel oil prices

The Indonesian government finally announced an increase in fuel oil prices despite strong protests from different organizations in the country.

On the occasion, the government also announced its decision to provide direct cash assistance to low-income families who will be affected by consequences of the government`s measure to raise fuel oil prices.

The government`s decision on the fuel oil price hike was an attempt to reduce the state budget deficit caused by the soaring world crude oil prices.

The price of world crude oil has reached a record high of US$130.47 per barrel on Wednesday (May 21), 2008.

Energy and Mineral Resources Minister Purnomo Yusgiantoro announced here Friday evening the increase in fuel oil prices starting at midnight today.

Present at the function announcing the fuel oil price hike were Finance Minister Sri Mulyani, Social Affairs Minister Bachtiar Chamsyah, Trade Minister Elka Mari Pangestu, Industry Minister Fahmi Idris, Coordinating Minister for People`s Welfare Aburizal Bakrie and Communications and Informatics Minister Muhammad Nuh among others.

The minister said ...