Govt not to Increase Fuel Prices until 2019
Date 19 Mei 2018
The Ministry of Energy and Mineral Resources (ESDM) guarantees that the Government will not increase prices of gasoline and petrodiesel despite the increase of world oil prices, including Indonesian Crude Price (ICP).
“The price of petrodiesel, gasoline, and kerosene will not rise until 2019,” Agung Pribadi, Head of Communication, Public Information Services and Cooperation Bureau, Ministry of Energy and Mineral Resources (ESDM) said on Friday (18/5).
Agung explained that the policy aims to improve economic as well as social stability and maintain purchasing power. Agung added that price adjustment of other types of fuel needs Government approval.
Agung further said that the increase of crude oil price or Indonesian Crude Price (ICP) will also increase State revenue from oil and gas sector compared to 2018 State Budget (APBN).
Agung explained that the average price of ICP from January to April 2018 is 64.12 US$ per barrel or 16 US$ higher than ICP assumption in 2018 State Budget which is 48 US$ per barrel.
Based on the 2018 State Budget, according to Agung, ICP increase per 1 US$ can add Rp 4 trillion revenue from oil and gas sector, on condition that oil and gas lifting and exchange rates are same as what have been proposed in 2018 State Budget. Thus, the potential for additional oil and gas revenues from ICP increase is Rp64 trillion.
On another occasion, Director General for Oil and Gas at the Ministry of Energy and Mineral Resources Djoko Siswanto added that the Government considers adding subsidy for petrodiesel from Rp500 to Rp1,500 per liter. (Humas Kementerian ESDM/ES) (RI/MMB/Naster)