CMA: Rising prices for unsubsidized fuels could boost inflation

JAKARTA, KOMPAS.com – The unsubsidized increase in fuel prices by PT Pertamina (Persero) on Sunday (1/7/2018) is considered to be potential for triggering a price hike that also an impact on inflation immediately

These concerns are badessed to occur if current conditions are allowed to continue without further efforts by the government.

"It is not possible to trigger inflation and provoke an increase in the price of commodities," said a House of Representatives Committee VII, Rofi Munawar, to through a written declaration to Kompas. He pointed out that the same event occurred in March 2018, during which the Central Bureau of Statistics (BPS) mentioned the contribution of the increase in unsubsidized fuel prices to inflation. national.

(Read: Pertamina raises Pertamax price)

Inflation in March was 0.20 percent or up 0.03 percent from the previous month. Inflation was fueled by rising oil prices from Pertalite, Pertamax and Pertamax Turbo.

At that time, Rofi added that Pertamax prices rose by Rp 300 per liter and that Pertamax Turbo prices have risen by Rp 500 per liter since February. While the new price of Pertalite rose by 200 Rp per liter at the end of March.

"Fuel prices are evaluated every 3 months, the unsubsidized fuel of Pertamax on July 1 has increased significantly, on average Rp 600 per liter.In fact, in some provinces, the increase was 1,000 Rp per liter, "

He urged the government to take control measures to ensure the impact of the increase in unsubsidized fuel prices

[Read: subsidies are not heavy for society.