Throughout of The History in Fuel Price Subsidies, Once The New Gasoline and Diesel Prices are Similar

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lindaJakarta – Currently there are three types of fuel oil (BBM) which is subsidized by the government. The third fuel is gasoline, diesel oil and kerosene. Fuel subsidies have also been several times to increase the price. Lastly on 17 November 2014 was announced by President Jokowi.

Throughout history several times the increase in fuel price subsidies, once newprice of premium gasoline and diesel oil respectively Rp. 4,500 per liter. Ithappened in 2009, during the reign of President Susilo Bambang Yudhoyono.More premium prices are always under premium gasoline. What causes thediesel oil are always under the premium price?

Downstream Regulatory Agency Committee on Oil and Gas (BP Migas) IbrahimHashim, who confirmed associated with it reveals there are a lot of things sowhy is the price of diesel fuel is lower than premium gasoline. Though most of this is diverted during the fuel subsidy types of diesel oil.

“So obviously not only economic considerations. Oil is dirt cheap for domestic use for cooking and lighting. Solar, too, is widely used for the transport of goods and micro enterprises as well as fishermen. So the increase in diesel prices could have a major impact on inflation due to rising prices goods”, Ibrahim said on Tuesday (12/23/2014) inJakarta.

According to Ibrahim, the policy considerations in fuel prices in each country is different. Can economic reasons,political, social and others. That is why in Indonesia fuel price different levels inversely with economic price.

“The order of the economical price, the most expensive sequence is kerosene, diesel oil and gasoline. But the price of subsidized fuel in our country it upside down, the most expensive sequence is a premium, diesel and kerosene”, said Ibrahim.