The Politics of Oil Price Rises

Increase the price of fuel in line with the rise in the world oil price. Dont increase subsidies for the sake of the presidential election.

June 1, 2004

THE world crude oil price has risen and the dollar is strengthening, so who should bear the burden? Most fuel in Indonesia comes from imports and must be paid for in dollars. So if fuel prices are kept in line, prices should also rise, adding to the burden of consumers. If not, it would mean the government paying out extra for subsidies, upsetting the governments spending plans. The public will eventually feel the effects of either of these choic

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