REPUBLIKA.CO.ID, JAKARTA -- The price of subsidized fuel will be cheaper as the government planned to reduce the price in February following the dip of the global oil price, an official said on Thursday.

"We are calculating the price cutting and the adjustment. I am certain that in February it (fuel price) will be down again," Coordinating Minister of Economic Affairs Sofjan Djalil said in the Vice Presidential Office here Thursday (8/1).

The price of Premium had followed the market mechanism as the Government has removed the subsidy for the RON88 fuel.

The Government, Djalil said, is planning to adjust the price for Premium in every two weeks following the development of the global oil price.

Previously on the first day of 2015, the Government has determined the new prices for Premium and automotive diesel fuels.

The new policy set a revised price for the RON88 premium fuel at Rp7,600 per liter from Rp8,500 and Rp7,250 per liter from Rp7,500 for automotive diesel fuel.

Under the new scheme, the subsidized oil prices are divided into three categories and will be evaluated by the government on a monthly basis.

The government's decision is based on the assumption that the Indonesian Crude Price (ICP) will be at US$60 per barrel and the rupiah's exchange rate at Rp12,380 per US Dollar.

The Government has removed the subsidy on the RON88 Premium fuel but still applies a subsidy of Rp1,000 for every liter of diesel fuel.

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