Safe Stock Amid Iran-Israeli Conflict, Minister Of Energy And Mineral Resources Ensures RI Still Holds Fuel Prices

Minister of Energy and Mineral Resources Arifin Tasrif (Photo: dock. VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif ensured that the government would still hold back domestic fuel prices in order to maintain people's purchasing power despite the increasingly heated geopolitical conditions between Israel and Iran.

Arifin said that currently, the stock of fuel and crude RI is in a safe condition so that there will be no increase in fuel prices in the near future. This is in line with the government's decision to hold the fuel price until June 2024.

"Yes, now we are holding it. While we are holding it, the stock is safe. Yes, but we will see the progress in the future, hopefully there will be no excavation of the Iran-Israeli conflict," said Arifin after attending a limited meeting with President Joko Widodo at the State Palace, Tuesday 16 April.

According to Arifin, based on calculations from the Ministry of Energy and Mineral Resources, an increase in oil prices of 1 US dollar will have an impact on subsidy expenditure and domestic compensation, however, this increase was followed by an increase in Non-Tax State Revenue (PNBP).

"If oil prices increase by 1 dollar, it can increase by around Rp. 3-4 trillion for compensation and subsidies, there is subsidy compensation. Not to mention if the rupiah increases by Rp. 100 is also quite large. That's why we have to save energy, this energy efficiency must continue to be launched, and carried out, programmed," said Arifin.

In the limited meeting, continued Arifin, President Joko Widodo asked all his ministers to anticipate the impact of the conflict by preparing a number of scenarios so that it could reduce the impact.

To reduce this impact, Arifin said it is necessary to carry out energy efficiency and take advantage of alternative energy that can be used to reduce the use of oil, which is estimated to increase up to 100 US dollars per barrel.

"What energy can we use from within the country to be able to replace it so that we can reduce the impact. But it can't be done in a short time, right, but the program already exists. We have programn it and also run it. And if possible, the speed will be increased so that it can run quickly," concluded Arifin.