Fuel oil price will definitely increase in near future: minister
Wait, wait for the president. However, it is certain that the subsidized fuel will certainly increase (in price)
Toba, North Sumatra (ANTARA) – The government has claimed that the price of subsidized fuel oil will certainly increase in the near future.
“Wait, wait for the president. However, it is certain that the subsidized fuel will increase (in price),” Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan said in Toba district on Saturday.
Pandjaitan avoided mentioning the exact time the announcement would be made since it was President Joko Widodo’s right to announce the decision.
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He also noted that the government is keen to remove the impact of rising fuel prices on the people, including by applying social assistance schemes, such as cash assistance.
“We don’t procrastinate. We always prepare everything like cash aid, giving it away. Therefore, when it is announced, it (cash aid) will be distributed,” he said.
The Minister admitted that the option of raising the price of fuel would have a knock-on effect on the prices of other products, although he felt that this was better than not raising the price of fuel.
He also said problems stemming from rising fuel prices would only be temporary.
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“It causes problems, yes. At the moment, indeed, for a while there will be (difficulties). However, after a few months it will not be the same,” he remarked.
He noted that the government had made good calculations, so the policy of raising fuel prices was the better option than keeping the price unchanged.
Moreover, government subsidies were huge, reaching 20 billion US dollars, so it was not good to hand out subsidies for too long.
“We’ve calculated that (raising fuel prices) is better than not. When? You’ll see. We can’t subsidize for too long. Almost $20 billion more is a (waste),” he said. he concluded.
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