Previously, the government had raised the price of non-subsidized fuel oil but was still holding back the price of the subsidized version. This time, the government signaled an increase in Pertalite fuel prices.
If previously it appeared from the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, now the signal is conveyed by the Chairman of the Budget Agency Said Abdullah.
“There will be no additional subsidies. The government’s option is to increase subsidized energy prices by considering the impact of inflation and the purchasing power of poor households,” he said Monday (15/8/2022).
The increase will not only occur in the Pertalite fuel type but also for 3 kg LPG and electricity at a certain power.
“As soon as possible, the Government will increase the price of Pertalite, 3 Kg LPG, and subsidized electricity because if it is not done quickly, it will further erode the subsidized energy supply quota. Moreover, there is a big price gap between Pertalite and Pertamax,” he explained.
The government and the DPR initially agreed on additional subsidies and compensation of Rp 502 trillion in 2022. However, several indicators previously estimated, including world oil prices, the rupiah exchange rate, and the fuel quota have shot up.
Among other things, world oil prices, are above US$ 106.7 per barrel on the annual average. The government’s final assumption is US$ 90-105 per barrel.
Then the rupiah exchange rate, which on average is already at the level of Rp. 14,552, is also above the government’s assumption.
Another thing that also affects is the volume of fuel that almost exceeds the quota. Pertalite’s fuel quota until the end of this year is only 6.2 million KL from this year’s quota which is set at 23 million KL.
“The DPR’s Banggar will not change the allocation of energy subsidies this year. The DPR’s Banggar has also suggested a policy of reforming the energy subsidy policy. The government should immediately implement the energy subsidy reform policy,” he explained.
Said did not mention the exact schedule of price increases. However, he suggested that the increase should not be done drastically, but gradually every 3 months. So that people do not experience heavy pressure.
“Just increase it gradually every 3 months,” said Said.
On the other hand, the government must also add social support to people in need. With the record that the recipient’s data is more accurate.
“The government must be aware of politics, so it should not increase drastically. Gradually, while looking at market conditions,” said Said.
