Fajarasia.id — Coordinating Economy Minister Airlangga Hartart said the government is monitoring global oil price movements. As global oil prices continue to fall, governments consider price adjustments to subsidized fuels
“Our country’s oil prices are still below subsidy prices, so naturally their sustainability will be monitored rather than falling oil prices,” Airlangga said.
Global crude oil prices have fallen below $100 a barrel. Part of the decline was driven by market concerns over slowing economic growth in many countries, which could impact oil demand.
Komai Dino Tonegoro, the reformist executive his director, said subsidized fuel has his two main variables: oil prices and the rupiah exchange rate. Then, of course, there are regulations, not to mention the government’s view of coordinating subsidized fuel prices with movements in global oil prices.
“Yes, I think that’s normal. Yes, the regulation already exists, so it’s a question of the last price action. For example, what are the existing regulations from January 24th to February 25th? , on prices, “in March of course, it’s time to back-calculate from 2022,” Komaidi said on Tuesday (31 January).
Pertalite subsidized fuel prices, he said, Mr Komaidi. Same quality as other fuel distributors, but cheaper. “But the key is that no matter how far fuel prices fall, they should not stray too far from what our competitors are selling for. I don’t know yet if I will sell two for IDR 12,000, but IDR 10,000 subsidized IDR 2,000, Komaidi explained. Meanwhile, the government has decided to continue providing energy subsidies to maintain people’s purchasing power and industrial competitiveness to help the economy recover amid the global energy crisis of 2023.
The government has set a target of IDR 209.9 trillion in energy subsidies by 2023. Details include IDR 139.4 trillion for fuel oil (BBM) and LPG (LPG) and IDR 70.5 trillion for electricity subsidies.
biodiesel 35
Aside from Golkar Party leader Airlangga Coordinating Minister Partalith, the government will also consider the effectiveness of using a mixture of diesel fuel and biodiesel at 35% or B35, he added. believes this policy could reduce diesel imports and reduce the amount of subsidies the government pays for this type of fuel.
In response, Comaidi reminded him of two things. One is the use of biodiesel made from palm oil products, some of which are difficult to obtain, and the industrial suitability of this fuel.
“User associations complain and inform about the performance of biodiesel because of its water content. It can happen at the power plant there too, maybe the problem lies somewhere else, it’s generally the same thing: a corrosion problem,” Komaidi concluded.***
