Wednesday, November 21, 2012

Fuel, again

Ministry of Finance offers 3 solutions to help ease the budget burden: 1) raise the fuel price by IDR 500/liter, 2) impose transition from fuel to gas for all (public?) transportation, 3) prohibit private cars to buy subsidized fuel.

Kudos for the first two (although, if the price is right, the transition should go automatically). But I'm confused with the last one. If private cars may not buy subsidized fuel and public buses should only buy gas, then whom the subsidized fuel are for? Supposedly motorbikes. But they're not the biggest consumers. Furthermore, who can guarantee there is no black market.

So I applaud the strong signal from the Ministry of Finance that the first option is the best.

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