Impact Of Middle East Conflict, Member Of DPR: Fuel Prices Don't Increase

Member of Commission VII DPR Dyah Roro Esti. (ANTARA/HO-personal documentation)

JAKARTA - The impact of the recent escalation of conflicts in the Middle East has affected the increase in oil prices in the world.

Member of Commission VII DPR Dyah Roro Esti hopes that the government will not increase the price of fuel oil (BBM) due to this impact.

"We hope that the impact of the conflict escalation in the Middle East can still be contained and overcome by the government, so that the option of increasing fuel can still be avoided," he said in Jakarta, reported by ANTARA, Saturday, May 4.

Roro Esti explained that the increase in tensions in the Middle East after attacking each other against Iran and Israel could have significant economic and geopolitical implications, especially on world crude oil prices.

According to him, the serious geopolitical tension is predicted to cause an increase in world crude oil prices to penetrate 100 US dollars per barrel.

Although for now, the price of world crude oil is still being monitored to be quite stable with prices for WTI types in the range of 79 US dollars per barrel and for Brent it is in the range of 83 US dollars per barrel.

Meanwhile, the assumption that the Indonesian oil price (ICP) in the 2024 State Budget is set at 82 US dollars per barrel.

On the other hand, added Roro Esti, due to geopolitical conflicts against domestic fuel price conditions, from the government, through the Coordinating Minister for Economic Affairs Airlangga Hartarto, has emphasized that fuel prices will not increase until at least June 2024.

Furthermore, the government said it still needed to see and further monitor the implications of the escalation in the Middle East for domestic fuel prices.

"However, I hope that the escalation of the conflict in the Middle East will not result in an increase in fuel prices," said Roro Esti again.