Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Fuel Prices Increase 28.7%
Bali Hotels, Bali Villas and Bali News from
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Bali Update
Subscribe to our free weekly newsletter!
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

++62 361 286 283

++62 361 286 284

U.S.A. Fax:(toll free)

U.K. Fax:

Australian Fax:

++62 812 3819724

Bali Discovery

Bali News

Fuel Prices Increase 28.7%

Government Tries to Address Shock of Fuel Cost Increases with Cash Payments to the Nation's Poor.

Bali News:
Click Image to Enlarge


The much dreaded and long awaited increase in fuel prices was introduced at midnight on Friday, May 23, 2008, across Indonesia. Fuel prices increased an average of 28.7% in a bold step to reduce the crippling fuel subsidies paid from the Indonesian State budget, lately made even more burdensome by soaring world crude oil prices.

The Hikes in Prices

The Minister of Energy and Natural Resources, Purnomo Yusgiantoro, announced that the kerosene used for cooking in many low-income households would increase 25% from Rp. 2,000 (US$0.217) to Rp. 2,500 (US$0.271) per liter; premium gasoline would increase 33% from its price of Rp. 4,500 (US$0.489) to Rp. 6,000 (US$0.652) per liter; and diesel fuel increasing 27.9% from its price of Rp. 4,300 (US$0.467) to Rp. 5,500 (US$0.597) per liter.

Higher Prices May Await

The press conference formally announcing the price increase was attended by a large number of Cabinet Ministers making a public show of support for the controversial fuel price hikes. With the world price of crude oil now moving past the US$135 per barrel mark, none of the Ministers in attendance were prepared to offer any guarantees that prices won't be increased again if the price of world oil continues to soar to higher levels.

The Situation in Bali

On the eve of the fuel price increase, long lines began to form at gas stations across Bali as consumers attempted to "fill up their tanks" before the higher prices came into effect at midnight. A high police presence was obvious at many gas pumps in an effort to help maintain public order.

Bali Post also reports that 12 fuel hoarders were apprehended on the eve of the increase. The hoarders taken into custody were attempting to stockpile amounts ranging from as little as 150 liters to as much as 1,000 liters of fuel.

The manager of distribution for the State Oil Company Pertamina in Bali, Nusra J. Simanjuntak, told the press that fuel supplies in Bali remain adequate in the face of current daily consumption of 1,600 tons of premium, 400 tons of diesel and 475 tons of kerosene.

Cash Fuel Relief Payments

In an effort to ease the pain of the substantial increase in fuel costs and address widespread public discontent, the Government will introduce Cash Fuel Relief Payments (BLT) in ten cities starting from Saturday morning, May 17, 2008. The ten initial cities included in the program are Jakarta, Surabaya, Bandung, Makassar, Medan, Banjarmasin, Kupang, Yogyakarta, Palembang and Semarang. It's is not clear when the cash subsidy will be introduced in Bali where many local legislators and political leaders have called for Bali's Governor to refuse to participate in the BLT system. The relief program has been criticized in Bali by those concerned that the program will be riddled with corruption and other who feel that a "welfare state mentality" will be created among the Island's poorest citizens.

Those members of society determined to be eligible for assistance will receive a BLT card that qualifies them for a Rp. 100,000 (US$10.90) monthly cash subsidy to help offset higher food and general living costs.

The Department of Finance has allocated Rp. 4.1 trillion (US$445,7 million) to cover the cost of BLT program for its initial three months with a targeted 13.6 million recipients of an estimated total of 19.1 million people eligible for relief. The cash payments will be made to the public via the national Post Office System.

Related Article

[Fuel Prices to Increase after May 23]

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!

Our [Privacy Statement] explains how we handle the data you are providing.

Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!

or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Everything on your Plate
Police and provincial Authorities Warn that Motor Vehicles Staying More than 3 Months in Bali Must Convert to Local Police License Plates
Pearls of Wisdom
Pearls of North Bali and the Women Who Fashion Them at Living Lobby Art Exhibition Masters Showcase at Conrad Bali Resort Through January 10, 2015
When Kids Communicate and Collaborate
Global Issues Network Conference in Bali October 16-18, 2015
Dog Food?
Bali’s Deputy Governor Denies Accusations Made by DKI Official that Bali is Selling Dog Meat to Jakarta.
Ship’s Ahoy
Bali Seeks to Build Cruise Port in North Bali at Lovina
A Tiger Ready to Pounce
Tigerair Australia Receives Certification Needed to Fly Between Australia and Indonesia
It Pays to Speak Indonesian
Bali’s Deputy Governor Say Regulation Being Prepared to Require Foreign Workers be Proficient in Indonesian
Mea Culpa, Mea Culpa
Police Preparing Criminal Charges Against Ubud Resort Sales Executive for Marketing ‘Karma Cleansing’ Ritual to Gay Marriage Couple
Life, Snatched Away
Chinese Female Tourist and Angry Bystanders Kill Purse Snatcher in Seminyak, Bali
Wonderful Indonesia as a Brand
Indonesia Preparing to Spend US$244 Million on Tourism Promotion with Emphasis on Branding
The “X” Factor
AirAsia Indonesia to be Merged with Indonesia AirAsia X
Making a Love of Nature Natural
Bali Safari and Marie Park Persuading The Coming Generation To Care For Wildlife and Nature
All [News]!