JAKARTA – Gadjah Mada University Energy Observer Fahmy Radhi responded to Pertamina’s decision to raise prices BBM non-subsidized since March 3, 2022.
It is known that this price increase was in response to the skyrocketing world oil price, reaching above USD105 per barrel.
According to Fahmi, Pertamina’s decision was correct and did not cause turmoil in the community.
“Selective fuel price increases are the right and careful decision to reduce the burden on the state budget, without triggering inflation and worsening people’s purchasing power,” said Fahmy in his statement to MNC Portal Indonesia, Friday (4/3/2022).
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He said Pertamina’s decision would not affect inflation and reduce people’s purchasing power.
The reason is that the proportion of consumers is small and public transportation is not used so that it does not directly increase distribution costs, which triggers an increase in the prices of basic necessities.
He added, as a net importer country, Indonesia was greatly disadvantaged by this increase in world oil prices.
The burden of the state budget to provide compensation when Pertamina sells fuel below the price will be even greater if there is no increase.
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However, so far the government has been faced with a dilemma to increase fuel prices, because the increase has the potential to reduce people’s purchasing power
“Therefore, when world oil prices rise, the government needs to increase fuel prices selectively, namely raising the price of Pertamax to the top and removing Premium. However, do not increase the price of Pertalite,” he said.
For information, the new Pertamax Turbo price is IDR 14,500 per liter, Pertamina Dex IDR 13,700 per liter and Dexlite IDR 12,950 per liter.
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