September 4, 2008

Indonesia Cuts Airline Fuel Price By 15 Pct

Indonesia cuts airline fuel price by 15 pct JAKARTA, Sept. 3 (Xinhua) -- Indonesia has decreased the price of airline fuel by an average of 15 percent to 11.825 rupiah (some 1.29 U.S. dollars) per liter since Sept. 1, an official said here Wednesday.

Spokesman of the state-owned oil and gas company Pertamina Wisnuntoro said that the decrease of avtur (aviation turbo fuel) price was due to the ease of global oil price.

"We have decreased avtur price by an average of 15 percent at all airports in the country since September first because of the decrease of oil price," he told Xinhua.

The spokesman expected that the decrease of avtur price could lead to decrease of flight tariff as the fuel was 60 percent of the total cost component in aviation.

But the price of flight tickets will rise in the biggest Muslim country, as million of people will return to their homeland to celebrate Islamic festival marking the end of holy month of Ramadan.

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