Govt Delays Fuel Price Hike

TEMPO.CO, Jakarta – The government has indicated that the price of Premium gasoline will not rise during the Ramadan holy month and Lebaran. Coordinating Minister for the Economy Sofyan Djalil said the government would wait for the right time before increasing fuel prices.

The move is in line with the government’s target to curb inflation growth in light of the 0.5 percent price hike in May.

The Energy and Mineral Resources Ministry has decided that the prices of diesel fuel, known as solar, and Premium gasoline would remain. Oil and gas director general I Gusti Nyoman Wiratmadja previously said the policy was implemented to safeguard the people’s purchasing power ahead of the beginning of Ramadan in mid-June.

For now, the prices of Premium, solar and kerosene in regions outside Java-Madura-Bali are Rp7,300, Rp6,900 and Rp2,500 per liter, respectively. For Java, Madura and Bali, the prices of Premium, solar and kerosene are Rp7,400, Rp6,900 and Rp2,500 per liter.

Wiratmadja said those prices were not consistent with prices in the market. He added the price difference was still covered by PT Pertamina and would later be compensated when global oil prices tumbled. It is known that the average world’s oil price rose from the previous period, with the benchmark price of the oil market in Singapore even reached US$70 per barrel.

Energy and Mineral Resources Minister Sudirman Said said this policy aimed at maintaining fuel price stability and the people’s purchasing power. “It’s also important not to burden the fiscal of the country,” said Sudirman.

ALI HIDAYAT