Blown Sky-High
The lengthy distribution route of kerosene has raised its price higher than that stipulated by the government. Middlemen collect profits as poor consumers pay more.
January 14, 2003
On paper, the price of kerosene—the everyday household fuel—hasn't changed much. As of early this year, it is priced at Rp700 per liter, a Rp100 increase from this time last year. The government is increasing the price slowly, apparently in order to minimize the shock to kerosene users at the lower levels of the economic scale. It is planned that in 2004, the real price of Rp1,000 will be achieved; it won't be subsidized any more.
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