REPUBLIKA.CO.ID, JAKARTA -- Government decides to revoke subsidy for 88-octane premium fuel. Started from January 1, the price of premium fuel will be lowered from the current 8,500 IDR per liter to 7,600 IDR.

Coordinating Minister of Economy Sofyan Djalil said in a press conference at his office in Jakarta on Wednesday, December 31, that with the new system, government would no longer subsidize the price of premium gasoline in the future. He also said that premium gasoline would be eliminated soon.

During the press conference, he stated that a new fixed-subsidy policy for diesel, with the subsidy capped at 1,000 IDR per liter. "Under the new policy, the price for diesel fuel will be lowered from 7,500 IDR to 7,250 IDR per liter," he said.

He believes that such move can bring more dynamic competition for Pertamina and foreign gas stations. He expects Pertamina to be more efficient and speed up revitalization of refineries.

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