The Increasing of Crude Oil Price Lead to Crisis
April 20, 2008 – 10:41 pm
The price of crude oil that reaches US$ 117 per barrel caused the government worried about the fuel oil subsidies increasing.
This problem needs a serious concern, as nowadays the users of non-subsidized fuel tend to change to subsidized fuel.
The rich are not embarrassed to pursue the subsidized fuel. What a shame!
Since the Pertamax price increased on April 15, the Pertamax demand was descended. According to the Pertamina data, the descent in Pertamax consumption for the last three months reached 30 percent or was equal 400 kilolitres per the day. This case triggered the concern of the fuel subsidy. For now, the government still waits for the stable situation till next July.
The economists considered that the prices difference of the subsidized fuel with non-subsidized one could not be hold out. The staged rise of subsidized fuel price is considered as one of the ways out.
For you know, the fuel subsidy in APBN The Changing 2008 reaches to number of more than Rp 126 trillion, with assumption the oil price is US$ 95 per barrel. In addition, the electricity subsidy reaches Rp 60 trillion a month. Ironically, the food subsidy for poor citizen was only Rp 47 trillion.
Tags: crude oil, crude oil price, world crude oil