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Climate Change

Indonesia backtracks on cleaner gasoline plan over inflation fear

Pertamina to keep selling regular fuels, defying country's zero-carbon pledge

Indonesia subsidizes regular-grade gasolines to keep prices low. Last year, fuel subsidies, including for diesel, electricity and liquefied petroleum gas, reached 142 trillion rupiah ($9.9 billion)   © Reuters

JAKARTA -- Indonesia's move toward cleaner energy has hit another stumbling block, with the government backtracking on a plan to scrap regular and medium-grade gasoline products with high carbon emissions.

President Joko Widodo on Dec. 31 signed a regulation allowing state-owned oil and gas giant Pertamina to continue selling low-octane regular and medium-grade gasoline products called Premium and Pertalite, following a public outcry in recent weeks over rising prices for everything from chili peppers and eggs, to cooking oil and cooking gas.

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