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Gas Prices Go Down Again

Gas and Diesel Prices Reduced as Government Pushes for Price Reductions on Basic Living Staples.

Bali News:
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For the third time in recent months, the Government has reduced the price at the pumps for premium and diesel fuel. The latest price cut took place on January 15, 2009, reducing the price of premium from Rp. 5,000 (US$0.44) to Rp. 4,500 (US$0.40) per liter for premium and from Rp. 4,800 (US$0.43) to Rp. 4,500 per liter for diesel.

On a cumulative basis, premium gasoline is now 25% cheaper than it was on December 1, 2008, while diesel fuel has declined 18.2% in price over the same period. The price of kerosene remains unchanged at Rp. 2,500 (US$0.22) per liter.

Following a meeting of the Presidential Cabinet in Jakarta, President Susilo Bambang Yudhoyono has also announced a reduction in the basic unit cost of electricity for industrial users.

Seeking to see the benefits of lower energy reach other parts of the economy, the President promised a 10% reduction in transportation and called on meat producers to also reduce theire prices for a kilogram of beef from Rp. 62,500 (US$5.58)to Rp. 50,000 (US$4.26). Incentives are also being put in place that will reduce the cost of a liter of cooking oil from Rp. 10,000 (US$0.89) to Rp. 7,000 (US$0.625).

Seeking to reduce the cost of living for the average Indonesian, President Yudhoyono also pledged to take steps to help reduce the cost of milk and generic perscription drugs.

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