JAKARTA - The House of Representatives has suggested that oil fuel prices be adjusted to the declining global oil prices to guarantee the people's purchasing power.
This was conveyed by House Commission II member Guspardi Gaus in an official statement on the House's official website. "The lowering of the prices of non-subsidised fuel types such as Pertalite and Pertamax needs to be adjusted to the people's purchasing power by guaranteeing supplies and distribution amid the COVID-19 pandemic," he said.
According to Mr Gaus, lowering fuel prices would avoid the impression that the state is exploiting the public by setting prices above the people's economic value. He highlighted the slumping global crude prices due to declining demand during the COVID-19 pandemic.
Referring to the rupiah exchange rate of Rp 16,000 per US dollar and an estimated oil price of US$33 per barrel, said Mr Gaus, crude oil would be priced at around Rp 3,500 or Rp 4,500 including processing and transport costs and VAT. Including a 10% profit for PT Pertamina (Persero), the price would be around Rp 5,000 per litre. (LK/MS)