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A Tale of Two Fuel Prices

Tuesday, April 30, 2013

Subsidized gas and diesel prices for some consumers will soon rise to Rp6,500 per liter. The Energy and Finance Ministries originally wanted a single increase.

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During a meeting at his office on April 12, Coordinating Minister for the Economy Hatta Rajasa received a call on his cell phone. He quickly left the room. According to an official who was there that day, at the other end of the line was President Susilo Bambang Yudhoyono. The president wanted Hatta to review the price increase for subsidized fuel for privately-owned cars. The previously agreed upon rate was Rp7,000 per liter.

"The president asked

...

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