The effect of higher lubricant prices

The effect of higher lubricant prices

A "bonus" to add to the burdens which the Indonesian people
already shoulder in the crisis has been dispensed by our esteemed
state-owned oil company Pertamina, which has announced a 55
percent increase in lubricant prices. Without taking advance
measures to prepare the public, the company decided that the
unilateral decision would be effective as of yesterday (March
25).

We understand that the company's overheads have risen due to
rising operation costs and other expenditures. But considering
that everybody else is already suffering from price hikes,
Pertamina should have refrained from increasing the price of its
lubricants.

During the economic crisis, any price increase is a sensitive
matter. As an important cost component in the production of goods
and services, lubricants play a relatively significant role. Any
increase in their prices is certain to trigger increases in the
prices of other goods and services, thereby imposing an added
strain on the already severely taxed consumer.

-- Bisnis Indonesia, Jakarta