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Worries about rising fuel costs arise due to diesel subsidy cut
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A truck containing subsidized solar (diesel) fuel was confiscated in Batam on June 14, 2016 as it had been painted to appear as non-subsidized solar fuel. (tribunnews.com/Eko Setiawan)
W
ith the Solar (diesel) fuel subsidy amount scheduled to be cut to Rp 350 from Rp 1,000 per liter, people have begun to worry that the policy may be a burden. Concerns have increased in spite of the government's explanation that the cut will not result in a price increase.
South Tangerang resident Bagus Hadikusuma, 29, believes the government should reconsider the plan. He argued that public transportation vehicles often use diesel, suggesting that the subsidy decrease may result in a fare increase, closely followed by a rise in commodity prices.
“It will increase the daily living costs. I have a wife and a son to support,” he told thejakartapost.com on Wednesday.
Likewise, Yogyakarta resident Tommy Apriando, 27, voiced his objection to the government’s plan to cut the subsidy. Tommy said he was worried that the subsidy cut would increase public transportation fares. “I often use public transportation and thus feel the burden when the fare is increased” he said.
Many people in Eastern Indonesia, Tommy continued, still have no access to electricity and make use of the subsidized diesel as an alternative.
The government is considering cutting the solar fuel subsidy amount, aiming for a Rp 15 trillion efficiency in the state budget. Energy and Mineral Resources (ESDM) Minister Sudirman Said explained that low-oil price allowed the government to cut the solar fuel subsidy without raising the consumer price.
Currently, the subsidized Solar price rests at Rp 5,150 per liter. (sha/ags)
