Indonesia announces massive hike in fuel prices
Posted: 01 October 2005 0112 hrs

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JAKARTA : Indonesia announced Saturday that it was more than doubling the average cost of fuel as Jakarta seeks to cut crippling fuel subsidies.

The second increase of the year, which will have immediate effect, comes amid angry protests at the move and after the government decided to cut fuel subsidies that were devouring one-fifth of Indonesia's annual budget.

"This is a difficult decision taken by the government after considering all other options," said Coordinating Minister for Economic Affairs Aburizal
Bakrie.

Kerosene, widely used by the poor for cooking, went up from 700 rupiah to 2,000 rupiah (19.4 cents), an increase of 185.7 percent.

The price for premium petrol was raised 87.5 percent from 2,400 rupiah to 4,500 rupiah, while diesel oil rose 104 percent from 2,100 rupiah to 4,300 rupiah.

- AFP /ls