It more on administrative matter."Jakarta (ANTARA News) - An increase in the prices will discourage smuggling of subsidized oil fuels from the country, Finance Minister Chatib Basri said.
The price difference on the domestic and international markets will be smaller, Chatib said.
"If the government did not raise the prices, the price difference will be wider and would encourage smuggling," he said here on Tuesday.
The majority votes at the House of Representatives gave a nod in a plenary session on Monday night to government`s plan to raise the prices of subsidized oil fuels.
The House of Representatives in a plenary session approved revisions of the state budget raising energy subsidy to Rp199 trillion from Rp193 trillion in the original 2013 state budget.
The increase would be higher without raising the prices of subsidized oil fuel, Chatib said.
Without raising the prices of subsidized oil fuels, the energy subsidy would soar to Rp297 trillion.
He said subsidized oil fuel requirement would increase from 48 million kiloliters to 53 million kiloliters resulting in an increase in oil fuel subsidy without raising the prices.
He said the increase in the prices of subsidized oil fuels will cut consumption of subsidized oil fuels as the price difference between subsidized and non subsidized oil fuels would be smaller.
Smugglers also would not risk committing the crime with gain smaller as a result of the price hike on the domestic market, he added.
He predicted the domestic consumption of subsidized oil fuels would be around 48 million kiloliters as a result of the price hikes.
He said the government will announce the price hikes after the process of administration of the revised state budget has been wrapped up.
The government has no intention of delaying the announcement, he said, adding, "it more on administrative matter."
The government is awaiting the process of passing the state budget bill into law after the approval, he said.
"This will take time as it involved a number of state institutions,including the House of Representatives, and the ministry of justice and basic human rights, he said.
It is up to the president when the announcement is to be made, he said.
(Uu.H-ASG/H-YH)
Editor: Priyambodo RH
Copyright © ANTARA 2013
