Rejecting Subsidized Fuel Price Increases, Members Of Commission VII Ask The Government To Restrictions

Illustration (Photo: Doc. Antara)

JAKARTA - Member of Commission VII DPR RI, from the PKS faction, Mulyanto rejected the option to increase the price of subsidized fuel oil (BBM).

He also asked the government to limit and increase supervision over the distribution of subsidized fuel.

According to Mulyanto, this option is realistic enough to overcome the dilemma faced by the government regarding the procurement and distribution of subsidized fuel.

"The government must make a decision quickly so that no particular party speculates on the issue of the subsidized fuel price increase. The sooner the decision is taken, the better for all parties concerned," said Mulyanto in an official statement, Thursday, August 25.

According to Mulyanto, if the restriction on subsidized fuel is applied to vehicles other than two-wheelers and public transportation and transportation for groceries, the simulation results show that the government can reduce the fuel subsidy budget by 69 percent.

"This is quite a large number. Especially for the subsidy budget in 2023, because restrictions can start at the beginning of the budget year," he said.

On the other hand, Mulyanto assesses that if the restrictions on subsidized fuel can be combined with strict supervision, the efficiency of using subsidized fuel will be maximized.

So far, continued Mulyanto, as reported by Pertamina and BPH Migas, it is suspected that a large amount of subsidized fuel has leaked.

Leaks occurred in the industrial and mining sectors, as well as stockpiling and illegal exports to neighboring countries.

"If this fuel leakage can be reduced to the maximum, the existing quota and subsidy funds for 2022 will be sufficient. Even without a price increase," he said.

Moreover, said Mulyanto, it is known that world oil prices have recently continued to decline from US$120 per barrel at its peak in June 2022, to US$90 per barrel in August 2022.

Therefore, continued Mulyanto, BPH Migas and law enforcement officers must work extra hard so that the supervision of the distribution of subsidized fuel is right on target and does not leak.

To note, without any targeted efforts to limit the distribution of subsidized fuel, it is estimated that the fuel quota will run out in October 2022.

Until the end of 2022, it is estimated that the need for Pertalite will reach 29 million kilo liters, while the need for diesel will reach 17.5 million kilo liters.

In fact, the Pertalite and diesel quotas for 2022 are 23 million kilo liters and 15 million kilo liters, respectively.