PBBB Increases 10 Percent, How Will It Affect Non-Subsidized Fuel Prices?

JAKARTA - Director General of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) Tutuka Ariadji has increased a number of things that will arise from the policy of increasing the Motor Vehicle Fuel Tax (PBBKB), especially in DKI Jakarta from 5 percent to 10 percent previously.

Tutka said the decision to raise PBBKB could lead to an increase in the price limit for non-subsidized fuel from business entities (BU) providing fuel.

"We have calculated and this will cause an increase in the upper price limit. This upper price limit, of course, BU Niaga will increase the fuel price because their margin will be eroded by this tax," said Tutuka, quoted on Friday, February 2.

Tutuka ensured that this could happen if the implementation of the policy was not postponed and not reviewed.

With the increase in non-subsidized fuel prices, Tutuka also said that it could raise a number of prices in the community and then could have an impact on inflation. This will also continue even though there will be a decline in world oil prices.

"We have never discussed this more deeply. So even though later, for example, there will be a decrease in oil prices (the world) will still have an effect," continued Tutuka.

It is said that Tutuka has simulated the amount of fuel price increases. For example, HCE 5 percent is IDR 13,556 per liter, with the increase in PBBKB, 10 percent of fuel prices can increase to IDR 14,130.

"So there is a significant increase for the community. We have never said about the increase," said Tutuka.

Previously when met on a separate occasion, Tutuka explained that his party had written to the Ministry of Finance and the Ministry of Home Affairs regarding the policy. This is because the policy concerns the oil and gas sector which also regulates the distribution of fuel.

"Because if the recommendation is postponed or not, we don't get there. But we will reveal the big impact. That must be considered in making decisions," said Tutuka, quoted on Wednesday, January 31.

Moreover, said Tutuka, the implementation of this policy has not been consulted with the Ministry of Energy and Mineral Resources as the technical ministry that oversees the oil and gas sector.