Fuel Imports Swell, Subsidized Fuel Prices At The End Of The Horn

Illustration (Photo: Doc. Antara)

JAKARTA – The rate of consumption of subsidized fuel oil (BBM) is getting faster, making the government inevitably increase the faucet imports from abroad. This indication is clearly visible in the new report from the Central Statistics Agency (BPS) released today.

The Deputy for Distribution and Service Statistics of BPS Setianto said that Indonesia had purchased fuel from abroad worth US$14.37 billion in just the last seven months (January-July 2022).

According to Setianto, this figure grew by around 97 percent compared to the same period in 2021. Meanwhile, from volume, there was an increase in quantity of 17.6 percent.

"Imports include fuel for motorcycles, cars, diesel engines, planes and others," he said on an online channel when giving a presentation to the media crew on Monday, August 15.

Just so you know, the increasing costs that must be paid by the government to bring in energy commodities, of course, have consequences for the use of the state budget.

To note, the state has budgeted a subsidy/compensation of IDR 502 trillion for this year. However, the use of subsidized fuel until mid-August has almost reached the quota for the entire 2022 period.

Data reported by Pertamina states that subsidized diesel stocks for 2022 are 14.9 million kilo liters. Meanwhile, the amount that has been distributed up to July has reached 9.9 million kilo liters.

A similar condition also occurs in pertalite type fuel which has absorbed 16.8 million kilo liters of the quota of 23 million kilo liters.

Increase fuel prices

The government has recently begun to be realistic with the condition of national fuel oil. This makes the option to raise the selling price to the public more and more inevitable.

VOI noted that the first signal for the price adjustment came from the Director General of Budget at the Ministry of Finance, Isa Rachmatawarta. Fortunately, the government several months ago reached an agreement with the DPR regarding the placement of additional social assistance funds (bansos) of Rp. 18.6 trillion.

It was revealed that the budget could be used as a buffer if it was decided to increase fuel prices.

"Yes, that is one of the possible uses of the additional Rp. 18.6 trillion in social assistance budget (when the subsidized fuel price adjustment is made)," he said last week.

Similarly, the Secretary of the Coordinating Ministry for the Economy, Susiwijono Moegiarso, said that the government is currently working on the most ideal price for the community if the policy of increasing the price is actually implemented. Even so, Susi was reluctant to specify what type of fuel would change the selling value.

"If it has to go up, the government must calculate the ideal value because it doesn't want to burden the community so that it can maintain purchasing power," he said.