Sunday, January 29, 2012

Fuel Prices Must Go Up?



A number of economic observers, even the Government itself more amenable if fuel prices raised by reducing subsidies. The reason, the policy restrictions on the fuel subsidized consumption, by means of redirecting the fuel to gas is difficult to be implemented for the near future.

"So indeed, in November (2011), I've said if raising the price for now is the sooner the better," said the Wakil Menteri Energi dan Sumber Daya Mineral (Deputy Minister of Energy and Mineral Resources), Widjajono Partowidagdo, in Jakarta, Saturday (27/1/2012).

He argued, if there is no increase in subsidized fuel prices that marks no policy at all. Due to the fuel subsidies itself already reached Rp. 165 trillion. Plus more the magnitude of the electric subsidy that also caused by fuel consumption is due to reach Rp 90 billion. Total subsidies because of subsidized fuel means reaching to Rp 255 trillion.

"Whereas the oil income of us Rp. 272 trillion. So Rp. 272 trillion taken from Rp 255 trillion. When the Rp 255 trillion it could for various things, could make the poor into the opposite, infrastructures, could make an area more advanced, and so on," added Widjajono.

Economic observers Chatib Basri voiced similar tones. Chatib says, if the government wants to reduce the fuel consumption is subsidized so the government should create a policy that not elaborate. "Therefore if want to make a policy so make an easy policy, dont intricate administration, dont intricate the monitoring," said Chatib.

Restrictions on fuel consumption, he rated that this such a complicated policy. The Government should check whether if any gas station there is a black market. According to him, should we place a police in gas station to keep an eye on fuel selling. "So the most straightforward from here actually is just raise it (fuel prices) up," said him.

At most, he said, additional inflation at most are just 3 percent. This increasing price is also no evidence could overthrow the government. For example, when the government of Susilo Bambang Yudhoyono (the president) raised fuel prices in 2008, and he could be elected again in the following year. "No proof or evidence that this government fell because of it (the increase in fuel prices)," concluded Chatib.

Deputy Director of ReforMiner Institute, Komaidi, has said, a number of stakeholders are not prepared with the policy restrictions of the infrastructure. Therefore, this research institute said, Government should raise the price of premium and diesel fuel with a range increase of Rp. 1.000-1.500 per liter. While continuing the program of gas-fuel for transportation.







No comments:

Post a Comment