Prices rise over fuel price hike fears
Prices rise over fuel price hike fears
Bambang Nurbianto, The Jakarta Post, Jakarta
While the fuel price increase is still a plan, the prices of
basic commodities here have already gone up, with rice, sugar and
palm oil taking the lead.
Traders in several traditional markets in the capital said on
Tuesday that the prices of basic commodities had increased
steadily since President Susilo Bambang Yudhoyono announced his
plan to gradually cut the fuel subsidy starting October.
"The increase is not so high, but it occurs steadily on a
daily basis," said Armani, 31, a trader in Kebayoran Lama market,
South Jakarta.
He said that prices of basic commodities in the market had
risen by up to 30 percent. The price of sugar, for example, has
gone up from Rp 5,000 per kilogram to Rp 6,000, medium-quality
rice from Rp 2,700 to Rp 3,000, high quality rice Rp 3,500 to Rp
4,500, palm oil from 4,800 to Rp 5,500 per liter and wheat flour
from Rp 3,700 to 3,900 per kilogram.
The prices of branded products such as instant noodles, palm
oil and various canned foods, however, have not increased.
Echa, another trader in Kebayoran Baru, said many producers
have informed them about plans to increase the prices of their
products.
"The producers of branded palm oil, instant noodles and canned
foods have told me about their plans to increase prices. They
said that they would announce the increase soon after the
government increases the fuel prices," he added.
The government announced last week that it would raise fuel
prices in early October in order to reduce the fuel subsidy and
reduce the burden on the country's budget.
He said that the rising prices of basic commodities did not
only affect residents, but traders as well.
He said that the turnover of his two shops reached some Rp 15
million per day before the news of the fuel price increase broke,
but now it had dropped to only some Rp 10 million per day.
"The market is quieter now because the purchasing power of
residents here has also declined," he said.
Several traders in Kebon Jati market, Tanah Abang, Central
Jakarta made similar statements about the price increases.
"We were forced to increase the prices last week because
agents have also increased their prices," said Riswandi, 32, a
trader in Kebon Jati, Tanah Abang, Central Jakarta.
"The increase in the price of basic commodities will be
unavoidable when the government announces the fuel price increase
before Idul Fitri," said Riswandi, 32, a trader in Kebon Jati
market.
He expressed the hope that the government would not increase
the fuel price drastically because it would cause a drastic
increase in the prices of basic commodities.
"The current increase in the prices of basic commodities has
reduced the number of people coming to the market. If the price
of fuel increases to over Rp 5,000, the prices of commodities
would increase by up to 50 percent," he said.
The current price of gasoline is Rp 2,400 per liter and if the
government revokes the subsidy completely, the price would rise
to around Rp 5,600 a liter.