The government`s decision to lower the diesel and premium gasoline prices has nothing to do with politics or efforts to boost President Susilo Bambang Yudhoyono`s popularity, a cabinet minister said.
"Don`t relate the gasoline price cuts to political designs in view of next year`s general elections. The decision is a public policy aimed at increasing the people`s prosperity," Communication and Informatics Minister M Nuh said at a press conference here Monday.<>
The policy to lower the premium gasoline price to Rp5,000 per liter and the diesel oil price to Rp 4,800 per liter was adopted because the world crude price had dropped, he said.
He said commodity prices were almost always determined by situational factors and very much dependent on such variables as supply and demand.
"But the important thing is it shows that every administration, every president will invariably wish to improve the people`s prosperity," the minister said.
Citing an example, Nuh said that to reduce the people`s economic burden following the domestic fuel oil price hikes last May 24, the government launched its direct cash assistance (BLT) program for the poor.
Therefore, Nuh said the public should not look at the premium gasoline and diesel oil price cuts as a politically motivated decision.
"We are facing a situation where whatever the government does -- either raising or lowering the fuel oil prices or keeping them unchanged -- is wronged. So, whoever runs the government has the right to determine policies, and therefore, as long as the policies can improve public welfare, they should be judged with a clear mind. For one thing, this fuel price cutting policy has nothing to do with practical politics or with the presidential election," he said.
The fuel price reductions were an indication of the government`s consistency in that previously it had increased the fuel oil prices because the world crude price had gone up so that, now that the world crude price had fallen, the domestic fuel prices also had to be reduced, Nuh said.
"It would have been a blatant show of inconsistency if, after raising the domestic fuel prices on the ground that the world crude price had soared, the government maintained the increased prices after the world crude price has come down," the minister was quoted by Antara news agency as saying.
Therefore, he said, the premium gasoline and diesel oil price reductions were a "very rational" policy to improve the people`s welfare which the public needed to view in an objective light.
The new premium gasoline and diesel oil prices were effective Monday (Dec 15). (dar)