Ahad 04 Jan 2015 22:09 WIB

Economist: No impact despite the fuel price declines

Rep: C87/Satya Festiani/ Red: Yeyen Rostiyani
Pasar tradisional
Foto: Republika/Aditya Pradana Putra
Pasar tradisional

REPUBLIKA.CO.ID, JAKARTA -- An economist said that government's move on revoking subsidy for 88-octane premium fuel, causing the fuel price to decrease, would not give any significant impact for people. Price of goods will not decrease soon.

"Price of goods will not decrease, unless there is an adjustment in transportation cost," Economist from Institute for Development and Finance, Eko Listyanto, said recently. 

By revoking the subsidy and allowing the fuel price to follow global oil price, the current price of premium fuel decreases by 1,000 IDR. The current price of premium fuel is 7,600 IDR per liter. 

However, the transportation cost already hiked when government increased the price of premium fuel. It caused the price of goods and foods to increase. He predicted that inflation would still high in January.

He also said that people were not used to floating price of fuel. When the price of global oil is rising, domestic inflation will be high.

 

 

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