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Oil prices drop, PKS politician urges Pertalite, Solar prices to be lowered

Tempo - January 10, 2023

Ade Ridwan Yandwiputra, Jakarta – The world oil prices reportedly plummeted from US$120 per barrel to US$74 per barrel. This could absolutely be one of the factors that affect fuel prices in Indonesia.

In the 14th Plenary Session of the House of Representatives (DPR) on Tuesday, January 10, 2023, a House member from the Prosperous Justice Party or PKS Faction Mulyanto highlighted that private-owned gas station operators such as Vivo and BP have dropped the prices of several types of fuel following the decline in world oil prices.

"Pertalite-like fuels, such as Revo 90 and Bp 90, have lowered prices," said Mulyanto.

He thus requested the DPR to encourage the government to immediately evaluate the price of subsidized fuel and reduce the current price of Rp10,000 per liter for Pertalite and Rp6,800 per liter for Solar.

"Pertamina (state-owned gas and oil firm) has dropped its non-subsidized fuel prices. Because of this, people are questioning when [the price] Pertalite will be lowered," he emphasized.

Mulyanto added that the previous increase in subsidized fuel prices contributed to the rise in the inflation rate, which has now reached 5.5 percent from previously 1.85 percent.

"While BI's (Bank Indonesia) target [of inflation] only ranges 3 percent plus/minus 1 percent. This [current inflation rate] is contributed by the hike in fuel prices," he said.

On this basis, Mulyanto hoped that the government will immediately evaluate and reduce subsidized fuel prices in order to ease the burden on the people and increase their purchasing power.

Source: https://en.tempo.co/read/1677800/oil-prices-drop-pks-politician-urges-pertalite-solar-prices-to-be-lowere