Indonesia will raise subsidised fuel prices by about 30% on Saturday, top officials said, as the government moves to rein in ballooning subsidies despite a risk of mass protests, APA reports citing Reuters.
From 2:30 p.m. (0730 GMT), the price of subsidised gasoline will rise to 10,000 rupiah ($67 U.S. cents) a litre from 7,650 rupiah, while that of subsidised diesel will increase to 6,800 rupiah a litre from 5,150 rupiah, energy minister Arifin Tasrif said.
President Joko Widodo said the decision to adjust fuel prices was a difficult one and was his "last option".
The subsidy budget in Southeast Asia's largest economy had tripled in 2022 to 502 trillion rupiah ($34 billion) from its original budget, pushed by rising global prices of oil and a depreciating rupiah currency.
Finance Minister Sri Mulyani Indrawati said more money would still be needed despite the fuel price hike, the amount depending on international crude prices.
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