Russian oil cannot be sold outside the country, resulting in an imbalance in supply, so the world oil prices are high and difficult to obtain
Jakarta (ANTARA) – The wide price disparity between subsidized and non-subsidized diesel fuels triggered the scarcity in subsidized diesel fuels, according to Minister of Energy and Mineral Resources Arifin Tasrif.
“The price gap between non-subsidized Pertamina Dex and subsidized Biosolar is around Rp8,000 per liter. People, who are supposed to buy the subsidized fuel, do not even get it,” Tasrif noted in a press statement on Friday.
However, the minister stated that the price of fuel oil in Indonesia was one of the cheapest as compared to countries in the Southeast Asian region, which has increased two to three folds in recent times.
One of the factors that caused the price disparity was the disruption in the global oil supply due to the geopolitical conflict between Russia and Ukraine, thereby resulting in a significant increase in the world oil price.
In March 2022, the price of Indonesian crude oil (ICP) had reached US$113.50 per barrel, an increase of US$17.78 per barrel from the previous US$95.72 per barrel in February 2022, the minister noted.
“Russian oil cannot be sold outside the country, resulting in an imbalance in supply, so the world oil prices are high and difficult to obtain,” Tasrif explained.
However, he ensured that the fuel oil quota was sufficient during Ramadan and Eid al-Fitr. He also noted that the quota would be likely increased to up to 10 percent as a form of the government’s precautionary measures against increased demand due to rising economic activity.
On April 7, Minister Tasrif and Pertamina President Director Nicke Widyawati visited nine gas stations in East Kalimantan and South Kalimantan to monitor the availability of fuel supply and distribution in the region of mining and plantations.
Tasrif noted that his side will increase direct supervision to prevent scarcity, queues, and potential abuse during Ramadan and Eid.
The supply and consumption of subsidized diesel fuel must be targeted properly, he stated.
“We prioritize distributing subsidized fuel for the beneficiaries’ vehicles. Those who are not entitled to subsidized diesel should not receive it,” he concluded.
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