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Diesel oil subsidy will rise to Rp 2,000 per liter: Sri Mulyani
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The types of fuel available at a Pertamina gas station. (Shutterstock.com/Sallehudin Ahmad)
F
inance Minister Sri Mulyani Indrawati has said her ministry has agreed to increase subsidies for Solar-branded diesel to Rp 2,000 (14 US cents) per liter, from the initial Rp 1,000 per liter subsidy.
The agreement is based on a proposal discussed by Energy and Mineral Resources Minister Ignasius Jonan, State-Owned Enterprises Minister Rini Soemarno and the management of state-owned oil and gas company Pertamina.
“The decision made yesterday was to increase the subsidy by Rp 1,000 per liter,” said Sri Mulyani in Jakarta on Tuesday.
The decision was made because the government decided to maintain the price of subsidized gasoline and diesel at Rp 6,450 per liter and Rp 5,150 per liter respectively until 2019, although global oil prices have increased significantly since the price projection of US$48 per barrel stated in the 2018 state budget.
Sri Mulyani said the decision to increase the subsidy for Solar was based on three considerations – the people’s purchasing power, the financial performance of Pertamina and the health of the state budget.
She said Pertamina would obtain additional revenue from 10 oil and gas blocks recently granted to the company by the Energy and Mineral Resources Ministry.
Sri Mulyani added her ministry had also agreed to disburse additional electricity subsidies, as the customers of subsidized 450 volt-ampere (VA) electricity had increased by 1 million last year.
"We will disburse an additional subsidy for 1 million new customers of 450 VA electricity,” she said. (bbn)
