SBY: Inevitably Fuel Prices Must Go Up

Jakarta-world oil prices average currently has reached US $ 115 per barrel. The Government was forced to declare the price hike will raise subsidies for FUEL subsidies in a Minardi 2012 STATE BUDGET which would swelling.

Thus delivered by President Susilo Bambang Yudhoyono (SBY) at Istana Negara, Jakarta, Wednesday (22/2/2012).

"From what is now a thriving construction then will we travel policy, however the medium to long term it's conversion from FUEL to BBG continued we do. Second, the price HIKES inevitably certainly must be adjusted to the right ascension, Ascension, "demolished SBY.

To launch this plan, PAJĄK will submit BUDGET Amendments to PARLIAMENT so that the increase in the price of FUEL is allowed.

"With good preparation, with planning are discussed with the HOUSE of REPRESENTATIVES and will be entered in the BUDGET-P hopes all of us this is a great solution to saving and penganaman our economies, rescue and safeguarding our STATE BUDGET," said YUDHOYONO.

But have not explained how the increase in the price of FUEL subsidies. This will be discussed with the HOUSE of REPRESENTATIVES.

Reasons For The Increase In Fuel Prices

At least many factors underlying the proposal of the President. One of them is linked a surge in world crude oil prices up to far exceed the BUDGET assumptions.

As known, the price of crude oil the world lately again surged through its highest record. In trading Wednesday (22/2/2012), the price of light sweet crude was at the level of US $ 106 a barrel, while Brent oil was at the level $ 121,40 per barrel. When the 2012 BUDGET assumptions only US $ 90 per barrel.

The President explained, in the last 2 months, the situation of the global economy has led to insecurity, uncertainty impacting directly and indirectly on the economies of countries in the world. The situation was, among others, the debt crisis in Europe and also geopolitical factor in the Middle East. Including Iran embargo so that is the problem of these countries eventually stopped the oil exports to the United Kingdom and France.

For further developments, President, the Government should immediately meresponsnya to save Indonesia's economy, especially the STATE BUDGET will be affected because of the membengkaknya of FUEL subsidies.

Described, the options for such a rescue been discussed since last year's meeting in Bogor. When it is, it's been decided first, reducing the enormous subsidies. Secondly, the reduction in subsidies then take precedence to such third parties for fuel, medium and long term solution is to convert FUEL to BBG.

"Fourth, there are components of the kontigensi if the assumptions changed, the crude oil price rises that are beyond our ability to volume restrictions option, then we have to adjust more options and policy we choose. It was in Bogor. The end of the year I travelled to Cilacap refinery capacity to inaugurate in Cilacap on December 30, I issued a statement in there I repeat again what concerns the subsidies and HIKE, "take apart the President.

The President explained, when it was decided the price Oil Indonesia (ICP) is US $ 100 per barrel, but now the price is already penetrate US $ 115 per barrel even cenderungnya is on the rise.

"Let alone two three days ago Iran has stopped its oil exports to the two countries in Europe, the European Union and America have given sanctions to Iran, and here's one boiling point which resulted in such a negative sentiment resulting in the price of oil goes up," he explained.

And with all these developments, according to the President, fuel prices should be raised. While a long-term solution which is the conversion of FUEL to a BBG will continue to do.

"Fuel prices inevitably would of course be adjusted to an appropriate increase in particular, an increase in the community, thus the increase in FUEL terdampak on it as well as other inflation mainly poor must we give direct assistance while community," he said.


(qom/ddn)
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