JAKARTA, Dec 25 (Reuters) - Indonesia will adjust the price of subsidised fuel in January, Energy Minister Purnomo Yusgiantoro said on Thursday, the third such move since Dec. 1 in response to falling world oil prices.
Yusgiantoro did not say how much prices would be reduced.
'There will be an adjustment of prices of (subsidised) gasoline and diesel oil,' he said at a Christmas gathering.
Taking advantage of drops in global oil prices, Indonesia announced on Dec. 14 reductions of 9 and 13 percent respectively in gasoline and diesel prices.
Fuel prices in Indonesia already are among the lowest in Asia, thanks to state subsidies.
While the burden of financing cheap fuel for the world's fourth most-populous nation has eased significantly due to the collapse in crude oil prices since July, domestic prices are still low by global standards.
The government cut gasoline prices twice this month to 5,000 rupiah ($0.46) per litre and diesel prices to 4,800 rupiah to help ease inflationary pressures.
The moves are expected to pave the way for the central bank to join its global peers in cutting interest rates more aggressively as Southeast Asia's biggest economy heads for elections next year.
($1=10,900 Rupiah)
(Reporting by Muklis Ali; Writing by Sara Webb; Editing by Michael Roddy) Keywords: INDONESIA FUEL/ (sara.webb@thomsonreuters.com; Reuters Messaging: sara.webb.reuters.com@reuters.net; +62 21 384 6364) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Yusgiantoro did not say how much prices would be reduced.
'There will be an adjustment of prices of (subsidised) gasoline and diesel oil,' he said at a Christmas gathering.
Taking advantage of drops in global oil prices, Indonesia announced on Dec. 14 reductions of 9 and 13 percent respectively in gasoline and diesel prices.
Fuel prices in Indonesia already are among the lowest in Asia, thanks to state subsidies.
While the burden of financing cheap fuel for the world's fourth most-populous nation has eased significantly due to the collapse in crude oil prices since July, domestic prices are still low by global standards.
The government cut gasoline prices twice this month to 5,000 rupiah ($0.46) per litre and diesel prices to 4,800 rupiah to help ease inflationary pressures.
The moves are expected to pave the way for the central bank to join its global peers in cutting interest rates more aggressively as Southeast Asia's biggest economy heads for elections next year.
($1=10,900 Rupiah)
(Reporting by Muklis Ali; Writing by Sara Webb; Editing by Michael Roddy) Keywords: INDONESIA FUEL/ (sara.webb@thomsonreuters.com; Reuters Messaging: sara.webb.reuters.com@reuters.net; +62 21 384 6364) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.