Indonesia mulls removing gasoline subsidy

The Indonesian government is considering reducing the current fuel subsidy, which this year costs the government Rp61.83 trillion (US$6.8 billion). According to the plan, the government will remove subsidies on 88 RON (research octane number) gasoline that currently sells at Rp4,500 (US$0.49) per liter. Leading economic daily Bisnis Indonesia reported that the government plans to put this product under market pricing, along with other high-octane gasoline. The plan is expected to take effect in 2009. (June 12, 2007)