Domestic Fuel Pricing - Stipulated in Presidential Regulation

The Government has issued Presidential Regulation No. 55 of 2005 on Domestic Fuel Pricing. This Regulation has been issued as a means of reducing the burden on State finances through the reduction of the subsidies that applied on fuel.

The most immediate impact of the subsidy reduction program aside from rising fuel prices is the inability of the poor to purchase their necessary daily kerosene supplies to maintain the ability to cook food. However, there ultimately will be significant inflationary pressure on the Government and employers to raise salaries to offset the rapid increase in prices associated with the rise.