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Fuel oil price on upward trajectory in 2024, govt says
The Energy and Mineral Resources Ministry expects prices of nonsubsidized fuel oil to rise throughout the year as geopolitical risks linger.
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Motorists fill up on Pertamax-branded fuel at a gas station in Jakarta on Nov. 21, 2017. (Antara/Akbar Nugroho Gumay)
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onsubsidized fuel oil prices are expected to rise throughout the year as geopolitical risks linger, according to the Energy and Mineral Resources Ministry.
The ministry’s Oil and Gas Director General Tutuka Ariadji said a disruption of logistics caused by “problems” in the Middle East and rising Chinese demand contributed to fluctuation in global crude oil prices.
“[Oil prices] have been rising and falling from day to day, but the [trajectory] is upward,” he said in Jakarta on Monday, as reported by Kontan.
He also noted the influence of the United States, Russia and Saudi Arabia on oil prices. In October last year, supply cuts by major crude providers Saudi Arabia and Russia, combined with the US interest rate hike, put upward pressure on oil prices despite a rising dollar.
Read also: Govt mulls switching fuel subsidy to Pertamax to curb pollution
A strong dollar typically weighs on oil prices, as it makes the commodity more expensive for holders of other currencies, dampening demand for crude.
Tutuka said subsidized fuel prices would not be raised despite the price fluctuations.
