JAKARTA, May 20 (Reuters) - Indonesia's proposed budget for next year assumes an increase of about 45 percent in the price of subsidised petrol.
The government has been agonising for months over how and when to increase prices of heavily subsidised fuel, which consume an increasingly large portion of the annual state budget and add to the current account deficit.
In the proposals given to parliament on Monday, the government budget for 2014 assumed the price of low octane petrol will rise 2,000 rupiah (21 US cents) to 6,500 a litre. Diesel would be 1,000 rupiah higher at 5,500 a litre.
President Susilo Bambang Yudhoyono recently said any price increases would be dependent on parliament approving financial measures to protect the poor from the impact of more expensive fuel.
(Reporting by Adriana Nina Kusuma and Rieka Rahadiana; Writing by Jonathan Thatcher; Editing by Richard Borsuk) Keywords: INDONESIA FUEL/
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