This country hikes fuel prices by 30%, cuts energy subsidies

Indonesia has hiked fuel prices as much as 30 per cent across the country after the government reduced some of the costly energy subsidies, reports AP. The hike has raised the price of petrol from around 51 cents to 67 cents per litre. For diesel, the price has been increased from 35 cents to 46 cents.

The report further claims that Indonesians have been fretting for weeks about a looming hike in the price of subsidised Pertalite RON-90 petrol sold by Pertamina, the state-owned oil and gas company in the country. The report also claims that this hike comes as the first in eight years.

The price hike of both petrol and diesel resulted in long lines of motorbikes and cars snaking around refuelling stations as motorists waited for hours to fill up their tanks with cheaper fuel before the increase took effect on Saturday.

In an official statement, Indonesia's President Joko Widodo said the decision to increase the fuel prices was his last option as the country's energy subsidy had tripled this year to $34 billion from its original budget, triggered by rising global prices of oil and gas. “The government has tried its best as I really want fuel prices to remain affordable. The government has to make decisions in difficult situations," he added.

The Indonesian government has subsidised fuel for decades in Indonesia, the vast archipelago nation of more than 270 million people.

Indonesia is not the first country that witnessed a significant surge in fuel prices in recent times. Sri Lanka, Pakistan, Bangladesh are other countries too witnessed a massive hike in petrol and diesel prices in recent times. India too, had to went to through such a phase. Petrol and diesel still sell at around ₹100 per litre pricing in many cities across India.