Indonesia's parliament blocks fuel prices hike

AP News
Posted: Mar 30, 2012 10:32 PM
Indonesia's parliament blocks fuel prices hike

Indonesia's parliament has blocked the government's plan to hike fuel prices by more than 30 percent this weekend, but will allow a future price increase under certain conditions.

The government was set to raise the price of gasoline from around 50 cents to 65 cents per liter on Sunday. It says it has no choice but to cut budget-busting fuel subsidies, which have for years enabled motorists to fill up for roughly $2 per gallon.

The 550-seat house voted early Saturday to allow a price hike only if the average price of crude in six months soars 15 percent above $105 a barrel, or $120.75 per barrel. The current price is about $103 per barrel.

The vote came amid massive street protests in major cities against the plan.