Economist Recommends Raising Fuel Price as Oil Price Soars
27 January 2018 19:00 WIB
TEMPO.CO, Jakarta - Economist Chatib Basri expressed that government needs to raise subsidized fuel price (BBM). Surging price of world`s crude oil has far exceeded the assumption in 2018 state budget (APBN).
As stated in Oilprice.com, world’s crude oil is US$70 per barrel this morning. Meanwhile, the government established the assumption of oil price as much as US$ 48 per barrel in the state budget.
Chatib claimed that the price gap will put pressure on the balance sheet of state-owned oil and gas company PT Pertamina assigned to distribute subsidized fuel. In addition to affecting the performance of PT Pertamina, the pressure will affect state revenues. "Dividends will decrease," he said in Jakarta on Friday, Jan. 26.
Although the decrease of dividends can be compensated by non-tax national revenues (PNBP) from oil and gas sector that will increase, he assessed that the option to raise subsidized fuel price still needs to be welcomed.
Moreover, the government is considered able to deal with decreasing purchasing power. He said that cash aid can help push purchasing power.
VINDRY FLORENTIN
