There Is A Suggestion For Pertalite Price To Increase But Pertamax To Be Lowered, Agree?

Illustration. (Photo: Doc. Antara)

JAKARTA - An economist from Gadjah Mada University (UGM) Fahmy Radhi proposed that Pertamina increase the price of Pertalite. However, it also lowered the price of Pertamax to narrow the price disparity between the two types of fuel.

"By increasing the price of Pertalite and lowering the price of Pertamax simultaneously, the maximum price difference is Rp. 1,500 per liter. This price policy is expected to encourage Pertalite consumers to migrate to Pertamax voluntarily," said Fahmy Radhi, in a statement, Saturday, August 13, quoted from Antara. .

Massive public communication also needs to be done regarding the use of Pertamax which is better for vehicle engines and is more efficient. This narrative will be able to make people's interest switch from consuming Pertalite to Pertamax.

Until July 2022, Pertamina reported that the consumption of Pertalite type fuel oil had reached 16.8 million kiloliters, equivalent to 73.04 percent of the total quota set this year of 23 million kiloliters. This high consumption figure makes Pertalite's quota remaining only 6.2 million kiloliters.

If efforts to limit Pertalite's consumption are unsuccessful, the subsidized fuel quota is projected to collapse by the end of October 2022 at the latest.

This condition creates a dilemma for the Minister of Finance Sri Mulyani. If the Pertalite quota is increased, it will increase the burden of the state budget for subsidies to more than Rp600 trillion.

However, if the Pertalite quota is not increased, it can trigger a fuel shortage at various gas stations which has the potential to trigger social unrest.

Meanwhile, Minister of Energy and Mineral Resources Arifin Tasrif has so far only been able to urge the rich not to use subsidized fuel. He reasoned that consumers are rational beings who have price elasticity and will continue to consume fuel at lower prices as long as there is no prohibition.

"Arifin forgot that the three-kilogram LPG cylinder was written 'only for the poor'. In fact, more than 60 percent of non-poor consumers continue to consume melon gas because the distribution is open," said Fahmy.

In addition to reducing the price disparity between Pertalite and Pertamax, Fahmy continued, the government must immediately issue a Presidential Regulation which stipulates that Pertalite and Solar are only for motorcycles and vehicles for transporting people and goods to prevent the subsidized fuel quota from being broken.

According to him, strict and straightforward restrictions can prevent the breakdown of the subsidized fuel quota.

Fahmy assesses that the MyPertamina platform will not succeed in limiting subsidized fuel so that it is right on target, in fact it will cause inaccuracies and injustice for consumers who do not have access.

"To prevent the breakdown of the subsidized fuel quota, we can't just complain and appeal. However, a firm and straightforward policy needs to be implemented immediately," he concluded.