JAKARTA - INDONESIA'S President announced on Sunday evening further cuts in fuel prices, to take effect from Monday.

Susilo Bambang Yudhoyono said subsidised gasoline prices would be cut to 5,000 rupiah (S$0.682) per litre, from 5,500 rupiah per litre currently, a reduction of 9.1 per cent.

Diesel prices will be cut to 4,800 rupiah per litre, he said, from 5,500 rupiah per litre currently, a fall of 12.7 per cent.

Indonesia cut subsidised gasoline prices by 8 per cent on Dec 1 after a sharp drop in global oil prices but had left the price of subsidised diesel fuel unchanged.

However, with the continued drop in global oil prices the government of southeast Asia's biggest economy has come under pressure to reduce fuel prices further.