Ina Parlina and Tassia Sipahutar, Jakarta – After weeks of preparation to limit private cars' use of subsidized fuel, President Susilo Bambang Yudhoyono backtracked on Monday. The President harbored doubts of the policy's capacity to contain subsidy costs.

Presidential spokesman Julian Aldrin Pasha said the President was studying alternatives to providing subsidized fuel for only public transportation and motorcycles.

"There's a positive and negative side to all the options," said Julian after a limited Cabinet meeting on the policy. "The President wants a one-price policy for all motor vehicles," he said, adding that the President was still working on a fair distribution scheme for subsidized fuel to the poor.

Government officials had been optimistically vocal over the dual-price policy with public transportation and motorcycles still enjoying the current subsidized price of Rp 4,500 (46 US cents) per liter and private cars required to pay Rp 6,500.

State-owned energy company PT Pertamina had prepared more than 5,000 gas stations across the country to accommodate the strategy and had printed banners to raise public awareness.

Energy and Mineral Resources Minister Jero Wacik said the government had decided to make some changes to the plans after substantial opposition and doubts over the adequacy of the scheme.

"There is confusion over the policy. To make it more comprehensible, the government may decide to raise the fuel price all together. My guess is that the price will not exceed Rp 6,500," said Jero.

He also acknowledged that the dual-price policy would result in fraud and leakage as motorcycle and public transportations drivers could easily resell fuel to private car owners at a cheaper price.

Both Jero and Julian said the President was still undecided over the timing of the increase. A rise in the fuel price is always politically sensitive, often with the consequence of mass rallies that end in violence.