The Indonesian government might consider raise prices of subsidized fuels in the country to prevent the growing subsidy bill from getting even larger with oil prices on the global market reaching records every week. Indonesia - a diesel and gasoline importer - provides hefty subsidies for fuel that is used by consumers, but with oil prices far above the 95 US dollar per barrel this becomes increasingly expensive.

“There is an option to raise the fuel price if global prices go beyond $95 a barrel budget assumption for 2008,” said an official at the Ministry of Mining, who declined to be identified. “If oil prices go higher and the subsidy passes the ceiling, then the government has to find a way to keep agreed subsidy level in place.” No further details were given by the official……
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