Commission VII DPR Asks The Government To Save Because Of The Swelling Of Fuel Subsidies

Chairman of Commission VII DPR Sugeng Suparwoto. (Photo: Doc. Antara)

Chairman of Commission VII DPR Sugeng Suparwoto asked the government to save on state spending due to swelling energy subsidies, especially fuel oil (BBM), amidst the weakening of the rupiah exchange rate against the US dollar.

"As in ancient times, for example, lighthouse projects and so on were suspended, considering that in the near future this is of course an extraordinary implication," said Sugeng in his statement in Jakarta, quoted from Antara, Monday, July 1.

Sugeng also asked the government to seriously study fuel subsidies. Studies are needed to unravel the problem of subsidies that are felt to be increasingly strangling the state budget.

According to Sugeng, another problem arose because of the increasing fuel production price. The production price of pertalite type fuel rose from Rp12,400 to Rp13,500 per liter. That figure, he said, was Rp3,500 higher compared to the selling price at Pertamina gas stations, which was Rp10,000 per liter.

"Pertalite with a selling price of Rp. 10,000 (per liter), the production price is approximately Rp. 12,400. In fact, recently it will increase to approximately Rp. 3,500. So the actual price is Rp. 13,500," he said.

Sugeng assessed that the difference in production prices and selling prices had a heavy burden on Pertamina, especially if Pertalite's distribution exceeded the quota set in 2024, which was 31 million kiloliters.

"Each liter is approximately Rp. 3,500 multiplied by 31 million kiloliters. We are targeting that for Pertalite in 2024. And the existing prognosis will appear to be exceeded, even to 32 million kiloliters. Well, this is also a burden for corporations as I said earlier," said Sugeng.

Apart from Pertalite, said Sugeng, diesel fuel also experienced the same problem. Solar's economic price reached IDR 12,100, while the selling price at gas stations was only IDR 6,800. In fact, subsidies from the government are only IDR 1,000 per liter.

"This diesel has also experienced quite a serious problem, because we set the Solar subsidy between Rp1,000' Rp. 3,000, instead it was determined by the government Rp. 1,000 per liter. Now this is also what we continue to calculate," said Sugeng.