Government Ensures Pertalite and Diesel Fuel Prices Rise

Pertalite Fuel

The price of subsidized Pertalite and diesel fuel oil (BBM) has become a hot topic in the community as the government plans to increase the price. This time, the riddle has been answered. The government ensures that the price of both types of fuel will increase.

This was stated by the Coordinating Minister for Economic Affairs Airlangga Hartarto when answering questions at the RSIS Distinguished Public Lecture forum: Indonesia, Singapore, ASEAN, and The New Landscape, as quoted on Tuesday (30/8/2022).

“So we are now planning to adjust the [BBM] price,” Airlangga said

“And we have issued, also to support the ability and people in need, social security. So we released a program for social security and when as many as 40% of people who need support have been supported, we will adjust the price of oil,” he explained.

In a limited meeting held behind closed doors at the Presidential Palace in Jakarta, President Joko Widodo (Jokowi) decided to increase social assistance funds for the community as a cushion in anticipating price spikes.

The total social assistance funds added reached Rp 24.17 trillion, of which Rp 12.4 trillion was for direct cash assistance (BLT), and Rp 9.6 trillion for salary subsidy assistance for workers whose income was below Rp. 3.5 million per month.

“I hope that the social assistance provided by the government can ease the burden on people who are faced with pressure from various price increases,” said Jokowi.

Meanwhile, Finance Minister Sri Mulyani Indrawati emphasized that the government continues to use state financial instruments to protect the people.

Sri Mulyani explained that the subsidy and compensation budget for fuel and electricity has tripled to Rp 502 trillion and is estimated to continue to climb to Rp 698 trillion due to rising food and energy prices triggered by geopolitical escalation.

“The very large fuel subsidy budget, above Rp 600 trillion, is enjoyed by the upper middle class. Only 5% of the diesel subsidy is enjoyed by poor families. Meanwhile, the pertalite subsidy is only enjoyed by the poor and the poor,” he said.

Therefore, the limited meeting decided to provide additional social assistance. In addition to BLT and salary subsidies, the limited meeting also asked regional heads to use 2% of general transfer funds, both general allocation funds (DAU) and profit sharing funds (DBH) of Rp 2.17 trillion to assist public transportation, motorcycle taxis, fishermen, and additional assistance.

“The President hopes that the transfer of fuel subsidy assistance to the neediest and poor groups can ease the burden caused by the pressure of rising prices,” said Sri Mulyani.

the government’s decision to distribute additional social assistance further strengthened the signal of an increase in fuel prices (pertalite and diesel fuel). The government is said to be raising subsidized gasoline prices next month, to be exact, September 1, 2022.

The possibility of an increase in Pertalite fuel prices at Pertamina gas stations will still be below Rp. 10,000 per liter with an increase of Rp. 1,000 to Rp. 2,500 from the current price of Rp. 7,650 per liter.