The Government Is Asked Not to Look for Reasons to Increase Subsidized Fuel Prices

Illustrations of subsidized fuel (Photo: dock. Antara)

JAKARTA - Member of Commission VII of the House of Representatives (DPR RI), Mulyanto, asked the Government not to develop a discourse to increase subsidized fuel prices.

He assessed that currently all indicators for increasing the price of fuel and 3 kilogram LPG gas are still safe so there is no reason for Pertamina to increase the price of these commodities.

"Demand for subsidized fuel and gas is still within safe limits compared to the available quota. The dollar and world crude oil prices are also relatively stable so there is no reason to increase the price of subsidized fuel and gas," said Mulyanto, Thursday, August 31.

Mulyanto added that the prognosis for subsidized fuel absorption in 2023 is still within safe limits compared to the existing quota. Moreover, world fuel prices are also still below the state budget assumption figures and dollar fluctuations are relatively stable.

Likewise, the prognosis for demand for 3 kilograms of melon gas is estimated to exceed the quota by only 0.28 million metric tons from the 2023 quota of 8 million metric tons.

"Even the State Budget (APBN) for melon gas subsidies can save IDR 25 trillion because the price of CP Aramco LPG gas is far below the APBN's assumed figure," continued Mulyanto.

So, according to Mulyanto, the issue of increasing subsidized fuel prices is just a hoax and should not be taken into consideration by the public.

"Officials who are not in charge of this issue should not speak carelessly so as not to trigger public unrest. It would be a pity if the public had to be burdened by issues that are unclear and unfounded," said Mulyanto.

For information, the RDP Commission VII of DPR RI with Pertamina's CEO and all staff on Wednesday 30 August discussed topics related to Pertamina's international business, oil and gas distribution, and the development of the acquisition of the Masela Block.

On this occasion, the Managing Director of Pertamina confirmed that the 2023 prognosis for the need for subsidized fuel and 3 kilograms of melon gas was still within safe limits according to the existing quota.