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GOVT PLANS 500% DIESEL SUBSIDY HIKE FOR 2019

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Nov 14, 2018
2397
The government plans to increase the subsidy for Solar-branded diesel fuel to Rp 2,500 (US 17 cents) per liter in 2019, from the current subsidy of Rp 500 per liter.
Solar costs Rp 5,150 per liter at the current subsidized rate
Finance Minister Sri Mulyani Indrawati said on Wednesday that the increased subsidy was possible upon projections that the global price for crude oil would not increase significantly next year.
The government's projection for the 2019 global crude price is $70 per barrel. The current global crude price is $71.71 per barrel on Wednesday
In June, the government announced that it would increase the subsidy for Solar this year from Rp 1,500 to Rp 2,000 per liter, but the plan has yet to be implemented.
Sri Mulyani said the government would soon announce this year's subsidy increase of Rp 2,000 per liter.
"For next year, the diesel fuel subsidy will be between Rp 2,000 to Rp 2,500 per liter, depending on the global oil price," she said after a Cabinet meeting at Bogor Palace in West Java.
According to the Energy and Mineral Resources Ministry, subsidized diesel composed 30 percent of the country’s fuel consumption.
This year's total fuel consumption is estimated at 75 million kiloliter, or 471.75 million barrels.
 
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