Global Oil Prices Drop; Govt Urged to Cancel Fuel Price Hike
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8 September 2022 13:26 WIB
TEMPO.CO, Jakarta - Member of Commission VII of the House of Representatives (DPR) from the PKS faction, Mulyanto, urged the government to revoke the policy on the hike in fuel prices as the global oil prices dropped to USD80 per barrel.
The figure, he opined, is far below the Indonesian Crude Price (ICP) or an oil price benchmark used for budget calculations. In the 2022 State Budget, the ICP amounted to USD100 per barrel.
“As the global oil prices drop, the government’s reason for raising subsidized fuel prices is irrelevant and hard to be accepted by the public,” said Mulyanto in his statement, Thursday, September 8, 2022.
Mulyanto thus asked the government to immediately review its latest policy on fuel prices. The government, he added, should not raise the fuel prices when the benchmark cost of production (HPP) continues to decline.
"The logic of the increase in subsidized fuel prices due to soaring world oil prices is getting no justification," he said.
From June 2022 until today, he went on, global oil price as reported on oilprice.com has continued to decline to close to USD80 per barrel. The United States, Malaysia, and other several countries had even lowered their fuel prices.
On Saturday, September 3, 2022, President Jokowi announced the surge in fuel prices, including the subsidized ones Pertalite and Solar, due to rising global oil prices and swollen energy subsidy budget.
IMA DINI SHAFIRA | M. JULNIS FIRMANSYAH
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