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May 14, 2008

Fuel to Stay Cheap for Some, Keeping Oil Expensive

by Emma Graham-Harrison, Reuters, China - While Indonesia appears set to raise prices as soon as this week, the world's fastest-growing oil users show little inclination to tackle their subsidy schemes, as fighting food-fuelled inflation has become their top priority. That's bad news for oil consumers in the rest of the world, who face record crude costs partly as a result of demand growing unchecked in countries where pump prices have barely risen since the middle of 2006 -- when crude was in the $70s.

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