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Oil Price Increases US$ 1, Subsidy Expenses Increase by Rp 5.7 T

Jakarta

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the increase in world oil prices had also increased the government’s budget for domestic energy subsidies.
If the world oil price increases by US$ 1, it will increase the burden on the state budget by Rp. 5.7 trillion for subsidies.

“So every one dollar increase in the price of oil will have an additional burden of Rp. 5.7 trillion. So now the price of oil is 100 dollars, while the benchmark we use in the state budget is 60 dollars, just multiply it by how much the impact will be,” explained Arifin checking gas stations in Medan, Saturday (9/4/2022).

Arifin also asked the public to understand the current conditions. He also asked the public to comply with the regulations for the use of subsidized diesel.

He asked for understanding from all parties who are not entitled to buy non-subsidized fuel. Arifin emphasized that trucks for business needs must buy non-subsidized sola.

“That’s why we appeal to industries that have been using subsidized diesel, either directly or indirectly through outsourcing, to use non-subsidized fuel. So as not to reduce the share of people who were allocated to get this subsidized fuel allocation, ” he said.

This is also done to prevent the increase in the use of subsidized fuel. Currently, with the increase in world oil prices, said Arifin, the use of subsidized oil will also increase the budget allocated for subsidies.

“Because there is a big change, namely the difference in the price of fuel raw materials, the world’s oil price is now increasing, and supply is also difficult. For this reason, if we can’t understand it, we can’t discipline it together, this will lead to the amount of subsidies and compensation. government will be great,” he concluded.

(afb / hns)

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