Analyst: Increased Fuel Price Gives Little Impact to Inflation
29 March 2015 16:00 WIB
TEMPO.CO, Jakarta - State-owned oil and gas operator PT Pertamina (Persero) has raised the price of Premium and solar (diesel) fuel on Saturday, March 28, 2015.
The price of both Premium and solar fuel has increased by Rp500 per liter while the price of kerosene stays at Rp2,500 per liter.
Economist from Gadjah Mada University Tony Prasetyantono said that the rising Premium and solar fuel price is still considered reasonable because the increase is the consequence of the weakening of Rupiah currency and the rising global oil price.
"It has not leaded to inflation or affect purchasing power,” he said to Tempo.
According to Tony, political crisis in Yemen has raised the global price of oil but the increase is still reasonable because the supply is still bigger than the demand.
He estimated that the highest oil price would be at US$60 per barrel; however, in such an uncertain geo-politic condition, the price of oil may also drop again.
Tony said that the new price of fuel would disrupt people’s purchasing power if it reaches Rp2,500 per liter and the figure may lead inflation of up to 2 percent.
However, he said that with the increase of Rp500 per liter, inflation in March is expected to hit only 0.3 percent and in April it will be at 0.5 percent.
FAIZ NASHRILLAH
