Govt Has 2 Options in Response to Soaring Global Oil Price
28 January 2018 16:58 WIB
TEMPO.CO, Jakarta - World oil price rose in fluctuation reaching US$ 60 per barrel in the past the past three months. It still can crawl up to US$ 70 per barrel. Nevertheless, energy subsidy set in 2018 state budget (APBN) was US$ 48 per barrel.
Energy analyst Marwan Batubara explained that government has two options to respond to the rise which will affect domestic fuel price. First, government can increase the subsidy to the state budget. Second government raise domestic fuel price in accordance to economic needs.
If the choice falls on the second option, Marwan reminded government to guarantee that the subsidy goes to the right group of people.
Marwan believes that the second option is better than that of the former.
"With state finance confronted with higher deficit, I think raising fuel price by ensuring fair distribution is more sensible," he continued.
BUDIARTI UTAMI PUTRI
