The price of benzine (a low octane grade of petrol) was 4,500 rupiah a litre (about SGD $0.60). This is used by most vehicles, including non-luxury cars and motor cycles and is heavy subsidized by the government. The government wanted to raise the price to about $1 but could not push it through, due to large demonstrations.
The fuel were provided by Petromina and Shell. They received a subsidy from the government to sell the fuel at below the market price. There was also a need to prevent the subsidized fuel from being used for other purposes. For example, a consumer cannot buy the subsidized fuel in a can and has to be pumped into a vehicle - but there is really no way to stop the consumer from pumping the subsidized fuel out of the vehicle later.
Luxury cars in Indonesia have to pay a price of about $1.20 for a higher grade of petrol. This is still much cheaper than petrol in Singapore - which cost about $2.20, nearly double. Petrol is more expensive in Singapore due to tax (about $0.44 cents per litre).
The fuel were provided by Petromina and Shell. They received a subsidy from the government to sell the fuel at below the market price. There was also a need to prevent the subsidized fuel from being used for other purposes. For example, a consumer cannot buy the subsidized fuel in a can and has to be pumped into a vehicle - but there is really no way to stop the consumer from pumping the subsidized fuel out of the vehicle later.
Luxury cars in Indonesia have to pay a price of about $1.20 for a higher grade of petrol. This is still much cheaper than petrol in Singapore - which cost about $2.20, nearly double. Petrol is more expensive in Singapore due to tax (about $0.44 cents per litre).
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