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Imports of oil products into indonesia by state-run oil firm PT Pertamina will decrease by 7 percent in May to 11.32 million barrels, with fuel oil imports also dropping to 740,000 barrels, Reuters reports.

Market sources have revealed Pertamina has purchased 5.8 million barrels of gas oil, 4.5 million barrels of gasoline, 280,000 barrels of jet fuel and 740,000 barrels of fuel oil for May delivery.

The May volumes are higher than forecasts made in April, when Pertamina said imports would fall to 10.54 million barrels in May from 12.17 million barrels the previous month as its refineries were running at full capacity.

Fuel oil and gas oil imports both dropped due to ample domestic supply with fuel oil inflows falling by 360,000 barrels from April levels of 1.1 million barrels and gas oil imports decreasing by 200,000 barrels.

Jet fuel imports remained the same at 280,000 barrels, whilst gasoline imports rose by 200,000 barrels from 4.3 million barrels in April, the highest increase since October 2007.

Demand for gasoline has continued to thrive in Indonesia as state-controlled pump prices shield car users from soaring oil prices. The finance ministry was reported to be evaluating a plan to raise subsidized fuel oil prices by 28.7 percent in June to reduce its subsidy bill, but the plan may prove to be unpopular amongst voters ahead of next year's elections.

According to sources at the ministry, the premium oil price was expected to be increased from Rp4,500 to Rp6,000 perliter, diesel oil from Rp4,300 to Rp5,500 and kerosene from Rp2,000 to Rp2,300 per liter. The increases would enable the government to save up to Rp25.877 trillion in subsidy funds from the state budget.

The Organization of Land Transportation Operators (Organda) has today rejected the government`s plan to raise fuel oil prices. Organda chairman Murphy Hutagalung said "I absolutely reject the plan. Even now, transportation cost takes 30 percent of our income per capita while in many developed countries, the portion is only 10 percent."