Electricity Rates Rise, The Price Of FUEL Has Not Been Ascertained Up Next Year

Jakarta -the Government has not dared to make sure whether next year's Fuel Oil prices (FUEL) subsidies would be proposed to raised, such as the proposed hike in Electricity Tariffs (TTL) of about 10%.

"I do not dare to say," said Minister Coordinating the economy Hatta Rajasa, when asked if next year's subsidies raised fuel prices next year.

Hatta was found at his residence, Widya Chandra Housing Complex, Jalan Gatot Subroto, Jakarta, Monday (19/8/2012).

Hatta said, yet no doubt FUEL subsidies because of rising prices no one can ascertain how world oil prices next year.

"The problem is we don't know how world oil prices later next year, since no one could verify it," Hatta said.

According to the Chairman of the Party Was National (PAN), world oil prices greatly depend by two things: supply and demand, as well as geopolitical conditions in the Middle East.

"If geopolitical conditions heat up and currently only has berlangung oil embargo of Iran, and Iran's oil production reached 3 million per day-3.5 million barrels per day. Surely it will greatly affect oil prices if supply from Iran at a standstill, "he said.

Even if this geopolitical conditions continues to heat up, and tensions in the Strait of Hormuz, then not only the oil from Iran are stalled, but also can supply oil production from other Arab countries.

"Imagine if kedua-keduanya occurs in the next year, and world oil prices reaching $ 200 barrels a year, soared, I dare not say," cetusnya.

As known, energy subsidies to 2013 budget planned would reach Rp 274,743 trillion, up from 2012 which is Rp 202,4 trillion.

(rrd/dnl)