Observer Of Elpiji's Policy Value 3 Kg One Price Blunder

Energy economy observer from Gadjah Mada University (UGM), Fahmy Goodhi assessed that the plan of the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia to impose a one-kilogram (kg) LPG is a blunder policy.

In fact, he said, previously Bahlil had made a blunder by prohibiting the purchase of LPG through retailers, causing long queues. The policy was later disallowed by the president.

"The policy of one 3 kg LPG price will also not make subsidies right on target because anyone, including the rich, is still free to buy subsidized LPG," he said in a statement to the media, Monday, July 7.

Fahmy said that the implementation of the 3 kg justeru LPG policy will increase the burden of 3 kg LPG subsidies to finance the difference in transportation costs between regions and regions.

In contrast to the one-price fuel policy throughout Indonesia, which is distributed entirely by Pertamina gas stations, the price of one fuel price can be controlled.

Meanwhile, the distribution of 3 kg LPG is carried out by Pangkalan and Agent Tunggal, which also involves thousands of retailers around the consumer location.

"Retailers are grassroots entrepreneurs and small stalls to cut their income by selling 3 kg LPG, of course, increasing the selling price to cover transportation costs and a small profit," he continued.

He continued, price disparities at bases and single agents with real retail prices are still reasonable.

In fact, he continued, it is acceptable because consumers do not spend transportation costs by buying 3 kg LPG in Pengcer.

The price among retailers will set a balance price so that it is impossible for retailers to set a price of 3 kg LPG to reach IDR 50,000 per cylinder.

"Due to the policy of one 3 kg LPG price not being able to achieve the goal of being more targeted and reducing price disparities for poor consumers, Bahlil should cancel the policy plan. If Bahlil is determined to implement it, the policy of one 3 kg LPG will potentially be canceled by President Prabowo, which will further undermine the reputation and capability of an ESDM Minister," said Fahmy.