Govt not to raise fuel prices: president

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono said on Wednesday the government will not raise subsidized fuel oil prices despite the current surge in global crude oil prices.

"We do not have that option. We are seeking alternative ways to at least ease the impact (of the surging global crude prices) without having to create a problem for the public at large," the president said.

The government was figuring out what kind of options were suitable to overcome the impact of the upward spiral in world crude prices, particularly to secure the state budget, he said.

"I and the vice president are all preparing options we can use particularly to secure the state budget," he said.

The options were expected to prevent a possible national economic upheaval, he said.

"If global crude prices increase further, we will do significant things which we will announce to the public," he said.

Global crude prices soared to a record high of US$96 a barrel recently.

Energy and Mineral Resources Minister Purnomo Yusgiantoro said fuel subsidy was likely to climb to Rp91 trillion from the Rp55.6 trillion assumed in the 2007 state budget. Electricity subsidy would soar to Rp50 trillion from Rp32.44 trillion.

Coordinating Minister for Economic Affairs Boediono declined to comment on the impact of the global crude price hikes on the 2007 state budget deficit which was projected at 1.6 percent or Rp61.9 trillion.

"Put your question to the finance minister," he said.