Economist: It's Time For Pertamina To Adjust Non-Subsidized Fuel Prices

Illustration. (Photo: Doc. Antara)

JAKARTA - Senior economist Ryan Kiryanto stated that it is time for PT Pertamina (Persero) to adjust the price of non-subsidized fuel oil (BBM), such as the Pertamax series to maintain the company's financial condition.

Ryan said that since March 2024 the BUMN has maintained prices, even though world oil at that time had soared rapidly, while private gas stations had adjusted their fuel.

"It doesn't matter if the current price of non-subsidized fuel must be increased. This adjustment will maintain the company's cash flow, maintain Pertamina's financial condition, as well as for the sustainability of supply in the future," Ryan said, quoted from Antara, Friday, July 26.

"The evaluation of the price adjustment for Pertamina's non-subsidized fuel must indeed be carried out," he continued, because for four months it did not increase prices, of course it had an effect on the financial condition of the BUMN.

Moreover, world oil prices have also fluctuated and even jumped since March 2024.

"If currently the price of non-subsidized fuel is increased, the calculations may be as 'compensation', because for several months the price of non-subsidized fuel is not adjusted, whereas on the other hand the price of world oil at that time was rising," he said.

According to him, the decision at that time not to immediately increase the price of non-subsidized fuel was correct because people's purchasing power was indeed weakening.

In this case, he added, although non-subsidized fuel is not for the lower class, it is feared that the direct price will have an immediate or indirect effect.

"Because it can spread to the prices of goods in the market. Meanwhile, goods in the market, those who buy are not only the rich, but also the poor," he said.

However, Ryan emphasized that if non-subsidized fuel prices will be increased, the state company must pay attention to several things, including that rising prices do not burden the community and do not have an effect on inflation.

"So it must be properly maintained at what price level non-subsidized fuel if it wants to be increased, which does not have a strong inflation effect," he said.

In addition, he continued, it is hoped that the increase will not cause too large price disparities with subsidized fuel such as Pertalite to avoid migration so that the subsidized fuel quota is also maintained.