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Pertalite use will trigger commodity price hike: Expert
An economist from the Indonesian Political Economy Association (AEPI) has said the launch of Pertalite or RON90 to replace the current RON88 Premium gasoline has the potential to increase basic commodity prices
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n economist from the Indonesian Political Economy Association (AEPI) has said the launch of Pertalite or RON90 to replace the current RON88 Premium gasoline has the potential to increase basic commodity prices.
"Replacing Premium with Pertalite will inflate basic commodity prices and this could become a 'special gift' for Muslims who will observe fasting during Ramadan this year," said Salamuddin Daeng as quoted by Antara in Jakarta on Tuesday.
He said the substitution of Premium with Pertalite violated the state budget law on fuel subsidies and would reduce the allocation of fuel for consumers from low-income brackets.
"Since the very beginning the government has not had good intentions as it decided to cut fuel subsidies by up to 300 percent in the revised 2015 state budget," said Salamuddin.
"This will inflict losses upon [state oil and gas company] Pertamina," said the analyst, who suspected the existence of a grand scheme to destroy Pertamina systematically.
"Replacing Premium fuel with Pertalite will infringe on the rights of consumers from low-income families to access affordable and good-quality fuel," he said. (ebf)(+++)
