House Member: Lower Subsidized Fuel Price
12 October 2015 17:46 WIB
TEMPO.CO, Jakarta-House of Representatives (DPR) Energy Committee member Ramson Siagian said that the diesel price cut stipulated in the third economic policy package released in September 2015 is not enough to boost people's purchase power. According to Siagian, the government should also lowered the selling prices of subsidized fuel, Premium.
He suggested cutting the prices from Rp7,300-Rp7,400 per liter to Rp6,500-Rp6,700 per liter, especially since "oil prices are still low," he said in a discussion at the Press Council Building on Sunday, October 11.
He also said that diesel fuel prices could be lowered further to Rp6,400 per liter. Pertamina now sells diesel fuel for Rp6,700 per liter.
Meanwhile, Indef executive director Enny Sri Hartati said the government's dependence on fuel import makes it difficult for Indonesia to formulate its own oil pricing scheme.
"That's why the government always uses global oil prices and the rupiah exchange rate as a consideration," she said, arguing that the people need cheap fuel with transparent pricing formulas.
Pertamina spokeswoman Wianda Pusponegoro argued that it is more appropriate to lower Solar diesel prices as opposed to Premium gasoline's, citing that almost 46 percent of Indonesia's 104 million vehicles run on diesel, mostly public transport. Meanwhile, 43 percent of Premium gasoline users are personal cars.
"To drive the real sector, the option is to cut Solar prices," she said.
In addition to lowering Solar prices from Rp6,900 to Rp6,700 per liter, Pertamina also cut the prices for 12-kg LPG cylinders and Pertamax gasoline.
INGE KLARA SAFITRI | ROBBY IRFANY
