No Room for Additional Energy Subsidy Budget, Time to Raise Fuel Price

By Editorial Team 16/08/2022
energy subsidy
Summary

The government is mulling increasing Pertalite prices in line with the revision of Presidential Regulation (Perpres) No. 191/2014. "This [Pertalite price increase] is also included in the ongoing study, which will later be seen and evaluated together, [because] world crude prices stay high," Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said on Monday.

The Energy Ministry is finalizing the revision of Presidential Regulation No. 191/2014 on Supply, Distribution, and Retail Selling Price of Fuel Oil. "Yes, within this month, shortly, we should be able to finish it," Arifin said.

Meanwhile, Chairman of the House Budget Agency Said Abdullah emphasized that there will be no additional fuel subsidy budget this year. The government's option is to increase fuel prices as soon as possible, considering the impact of inflation and the purchasing power of poor households. "Therefore, non-energy subsidy policy reforms and social protection programs must be more targeted and timely," he said.

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