JAKARTA - Head of INDEF's Center of Food, Energy and Sustainable Development (CFESD), Abra El Talattov assesses the government's plan to increase the price of 3 Kg LPG and Pertalite fuel is not right. He revealed that this decision was taken at the wrong moment because it coincided with the month of Ramadan and the government had recently raised the price of Pertamax fuel.
"If you look at the momentum, it is not right to do it today because the government has made price adjustments to Pertamax," Abra said at the Energy Corner, Monday, April 18.
According to him, the government's decision to increase the price of fuel, including non-subsidized LPG, will be more burdensome for the community because the pressure on people's purchasing power has not subsided during the fasting month and ahead of Idul Fitri.
"Now we are entering the month of fasting and demand is high, so we are concerned that this discourse is starting to stir. The government should probably execute this policy after Ramadan," added Abra.
Abra said, this decision will cause double pressure for the community because it will not only face an increase in fuel prices but will also face increases in the prices of other goods and commodities.
"So not only energy, the community also bears the trend of rising prices for other basic needs such as food, goods and other products," he continued.
According to him, the root of the problem that prompted the government to take the decision to increase the price of fuel is not only a matter of selling prices which are below the economic price, but because the subsidies that have been provided by the government so far have not been well targeted and are still targeting upper middle class households.
"I think there is still room for the government not to increase fuel prices because the problem is not with the selling price which is below the economy but subsidies that are not on target. So the government's main focus is to be able to accelerate the transformation of energy subsidies, not by increasing subsidized fuel prices and subsidized LPG. , said Abra.
Previously, Arifin also gave a signal to increase the price of subsidized fuel according to the economic level. Thus, if the price of world crude oil rises, the price of non-subsidized fuel and Pertalite will automatically increase as well.
"As well as adjusting the price of non-subsidized fuel according to the economy whose market is for the upper middle class, adjusting the price of pertalite, diesel oil, and accelerating substitute fuels," said Arifin.
He added that his party will also try to maintain fuel stocks in the long term and short term amid the spike in world crude oil prices. In the short term, the government will ensure that stocks during Ramadan and Eid are available to the public.
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