Pertamina urged to explain new fuel policy
Pertamina urged to explain new fuel policy
Moch. N. Kurniawan, The Jakarta Post, Jakarta
The Indonesian Consumer Foundation (YLKI) lambasted both the
government and the state-owned oil and gas firm Pertamina for not
offering the public sufficient explanation about the new fuel
price hike policy.
YLKI executive secretary Huzna Zahir said on Friday that the
foundation was confused by the new fuel price policy.
"We're confused as to why the government or Pertamina set the
fuel prices based on Singapore prices and how the system works,"
she told The Jakarta Post.
"It's another fact that the public is always being ignored,
even in policy making that has such importance like fuel prices."
She urged Pertamina to give a clear and simple explanation
about the new policy so as to minimize any negative impact on the
public.
The government raised fuel prices by an average of 22 percent.
But starting in March, local fuel prices, except kerosene for
households, would be set monthly, based on prices in Singapore or
the Mid-Oil Platts Singapore (MOPS) price.
The policy is necessary to help ease the burden of the state
budget and help curb smuggling of fuel products out of the
country.
Some economists and legislators also expressed their confusion
about the new policy earlier, adding that they feared an
inflationary impact.
Fear also exists that people will be tempted to hoard goods
and fuel products with the expectation that fuel prices could
rise again in March and the following months.
On the second day of the fuel price hike, Pertamina crude oil
trade manager Nasrullah declined to give an explanation about the
new policy, when asked by this newspaper.
He said that if the public would like to know more about the
new pricing formula, they could find it at Platts' web site
www.platts.com., or subscribe Platts' publications.
He added MOPS fuel price is the sum of brent price and
operating margin of refinery in Singapore, which according to
Pertamina's data, stood at US$2 per barrel.
Elsewhere, Huzna urged legislators to act quickly by summoning
the government and Pertamina to provide a satisfactory
explanation about the policy.
In November, the House of Representatives approved an average
30 percent increase in fuel prices for 2002, not a monthly price
adjustment based on Singapore price level.
The House plans to summon the government officials to explain
the matter next week.