Yudhoyono says world oil price could reach US$200 per barrel

"The world crude oil price could well reach US$160 to US$200 per barrel," the head of state said.

The president said the government recently increased domestic fuel oil prices by an average of 28.7 percent as it had estimated the world crude oil price would reach US$110-US$120 per barrel.

He said if the world oil price rose to US$140-US$145, the fuel oil subsidy would reach Rp205 trillion, not to mention the subsidy for electricity which would increase by Rp80 trillion to Rp300 trillion.

When the world crude oil price approached US$150 per barrel, the fuel oil subsidy would reach Rp230 trillion in addition to Rp80 trillion for the electricity subsidy.

"If the oil price increases further to US$160, the fuel oil subsidy will rise to about Rp259 trillion plus the Rp80 trillion increase in the electricity subsidy, the president said.

On the impact of the world crude oil price hike on the state budget, the president said, it would be "very unhealthy" if the subsidy for fuel oil and electricity reached Rp300 trillion.

The head of state, therefore, called on all the people, including government officials and members of state institutions, to continue economizing on the use of fossil-based energy sources so that fuel oil consumption and fuel oil subsidy could drop.

The head of state said the soaring of the world crude oil price to US$150 per barrel was an alarming sign.

Therefore, he said, when ...