The government agency in charge of downstream oil and gas policies calls for lower fuel prices “as soon as possible” in the face of falling world oil prices, while the energy ministry maintains a wait-and-see approach.
The director of the Downstream Oil and Gas Regulatory Agency (BPH Migas), Fanshrullah Asa, said on Friday that his office “wanted fuel prices – while world oil prices went down – to go down as well as social equity for the people. ” BPH Migas reports directly to the President, but fuel prices are regulated by the Ministry of Energy and Mineral Resources.
“This should happen as soon as possible,” said Fanshrullah, during a webinar on the state of the oil and gas industry downstream from Indonesia in the context of the COVID-19 pandemic. World crude oil prices are expected to average $ 35 a barrel this year, nearly half of $ 61.4 a year earlier, according to the World Bank.
Observers, lawmakers and some business players have expressed support for the drop in fuel prices in Indonesia as world crude oil prices beat record global consumption levels.
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In Indonesia, the largest oil-consuming country in Southeast Asia, daily fuel consumption was 30% below normal in April, with cities and provinces implementing partial closures, company data said. public oil company Pertamina, the country’s largest fuel distributor.
The world’s major oil exporters, also known as OPEC +, recently agreed to cut global crude oil production by 9.7 million barrels per day in May and June, which is expected to increase oil prices during the year.
The Department of Energy has expressed concern over a public and political reaction if the government today lowers the prices of government-administered fuels and then raises them again when world crude prices recover of the year.
“The government is still monitoring and assessing developments related to oil prices,” said spokesman for the Ministry of Energy and Mineral Resources Agung Pribadi in a previous statement.
The ministry had issued a ministerial decree in February that abolishes the floor price and introduces a new formula for calculating the price ceiling, giving way to lower prices and preventing wild price increases.
If you want to help in the fight against COVID-19, we have compiled an up-to-date list of community initiatives designed to help medical workers and low-income people in this article. Link: [UPDATED] Anti-COVID-19 initiatives: helping Indonesia fight the epidemic