Plans by the government of Indonesia to increase premium gasoline in June by 44% or Rp. 2,000 to Rp. 6,500 a liter (US$0.65) and diesel fuel by 28% to Rp. 4,500 (US$0.45) a liter has brought a reaction from the Bali Tourism Transport Association (PAWIBA).
PAWIBA, comprised of companies offering transport to tourist visitors, says an increase in their tariffs of between 10-15% is needed to meet the higher fuel costs and the rising cost of spare parts.
Bagus Soediana, the chairman of PAWIBA, speaking to The Bali Post, said his members are waiting to see how the cots of spare parts increases once the increased cost in subsidized fuel comes into effect sometime in June.
He estimated that approximately one week after the fuel increase takes place PAWIBA would be able to estimate the necessary increase in transport tariffs.
PAWIBA members represent the main supply of busses and vans used by Bali's hotels and tour companies.
Higher fuel prices are also expected to increase the cost of new vehicles and labor costs over time.
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