Good News! Fuel Prices Can Go Down If America And Europe Get Receptions, How Come?

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani stated that the downward trend in world oil prices has the potential to continue next year.

According to him, this is based on the projected weakening of the global economy which is believed to last throughout 2023. He said, giant economies such as America and the European region could almost certainly experience a recession.

America and Europe obviously have a very high potential recession. Why? Because their inflation soared very high and became the largest in the last 40 years," he said on Wednesday, September 7.

The Minister of Finance added that the central bank then took anticipatory steps to control inflation through accelerating liquidity reduction in the market and raising the benchmark interest rate.

Under these conditions, the risk of stagflation is very likely as reflected in the slowdown in economic growth, high inflation and a larger interest rate.

So we'll see that if the outlooks from countries that are in recession will definitely drop. Thus, the pressure on price increases is expected to decrease and make prices no longer above 100 dollars or lower," he said.

Meanwhile, the impact of the increase in global oil prices some time ago made the government inevitably make adjustments to domestic fuel platforms.

This can be seen from the decision to increase the price of subsidized fuel last week in order to reduce the threat of pressure from the state budget because it has to bear some of the selling value burden. So, if the level of world oil reference continues to decline, domestic fuel prices can also be sloping.

Citing Loilprice.com safe on August 31, 2022, the price of WTI Crude crude oil was recorded to be in the position of 89.55 US dollars per barrel. Meanwhile, Brent Crude is recorded at $95 per barrel.

The figure is much lower than the peak price increase which had touched 126 dollars per barrel.