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Premium Increase Choice Easier

Options premium price increase will cause inflationary impact of the most high compared to other options, subsidies and restrictions related to fuel consumption. But the policy was assessed as a simple choice and free from abuse. Simply put a premium price is increased, if the price increases accompanied by cash back (cash refund) for the multiplier effect of public transport price rise would not be too pronounced.

If the price of the further pertamax leave the premium, the government would have difficulty keeping the consumption of subsidized fuel quota of 38.6 million kl this year. Moreover, there is no sanction for luxury cars that consume a premium. The direct impact of rising fuel prices on inflation is actually not too big. Weight of fuel on inflation is only 3%. But who needs to watch out for is the multiplier effect that occurs.

Team supervision eradication policies subsidized fuel has proposed three options for limiting the cost of subsidies and fuel consumption. First, raise the premium price of Rp500 per liter and member cash back into public transport. Both limit the maximum pertamax price Rp 8000 per liter. Third rationed fuel consumption with the control system.

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