Poor brace for impact of price hike
Poor brace for impact of price hike
Damar Harsanto and Anissa S. Febrina, The Jakarta Post, Jakarta
Last weekend was not a pleasant one for Robinson Sirait.
"I am sorry to have to say this, but I ask for your
understanding on the fare. You know, with the fuel price hike and
all," the taxi driver said as a passenger got in.
"I lost Rp 50,000 yesterday because we were using the old fare
even though fuel prices had gone up."
If Rp 70,000 used to be enough to cover his daily fuel
expenses, now Robinson has to spend Rp 128,000 for gas.
Most taxi drivers in the capital are dealing with the same
problem since Oct. 1, when the government raised the price of
Premium gasoline 87.5 percent. Taxi companies have not yet
decided if, or by how much, they will raise their fares.
With an average daily income ranging from Rp 300,000 to Rp
400,000, most taxi drivers have to pay the company Rp 200,000 for
the use of the can.
"We usually take home Rp 50,000 after fuel and meal expenses,"
Robinson said.
With a wife and two school-age children to support, Robinson
only took home Rp 12,500 on Saturday.
Taxi companies are still debating whether to raise their
fares, said Bubung Burhana, director of the taxi division at the
Jakarta branch of the Organization of Land Transportation Owners
(Organda DKI).
Bubung told The Jakarta Post on Saturday that taxi operators
that provided gasoline for their drivers were pressing for a fare
increase, while taxi firms whose drivers bought their own gas
favored maintaining the current fares.
"Some taxi operators are against any increase, arguing that a
fare hike will hurt their business by reducing the number of
people using taxis," he said.
To date, only the Blue Bird group subsidizes the fuel expenses
for its 9,000 taxi cabs.
The Blue Bird Group said on Saturday it was pressing for a
fare increase.
"It would be naive of us to deny we will suffer from the fuel
price hike. But the final say is in the hands of Organda, and we
will go with their decision," Blue Bird Group spokesman Riza
Lazuardi told the Post.
The price of Premium gasoline, used by most of 26,000 city
taxis, was increased from Rp 2,400 to Rp 4,500 per liter.
Fuel accounts for 20 percent of the total costs of
transportation operators, including taxi companies.
Taxi drivers are not the only ones who will feel the pinch of
the higher fuel prices. With the prices of basic commodities
expected to climb, most households will be affected.
"The transportation cost from Kramat Jati wholesale market in
East Jakarta has gone up from Rp 80,000 to Rp 125,000," said
Warti Effendi, a trader at Mayestik market in South Jakarta.
She said she had no choice but raise the prices of her goods
by between 20 percent and 50 percent, and bear with the
complaints of her customers.
With the fasting month beginning in a couple of days, she
expects her sales to drop. "We cannot compete with the
hypermarkets in terms of prices."
For those people who use kerosene, the fuel price hike will be
a heavy burden. "We cannot buy kerosene for Rp 2,000 a liter,
which is supposed to be the price. The distributors are selling
kerosene for Rp 3,000 a liter," said a customer in front of
Warti's stall.
Despite the fact that kerosene is used mainly by people at the
lower end of the economic ladder, the price of the fuel was
raised by 187.5 percent, the highest increase for any fuel.