Can the price of petrol drop in Indonesia?

August 20, 2008

There is a likelihood that petrol prices might be dropping in Malaysia soon because of the drop in the price of oil.

Will this happen in Indonesia? Unless struck with amnesia Unspun cannot recall prices ever coming down once they went up in Indonesia.

clipped from bigdogdotcom.wordpress.com

Petrol price may come down to RM�2.10/litre

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The retail of price for petrol and diesel in Malaysia ought to come down in the near future. This is because at the moment, the price of crude oil in the international market is much lower than what it was at the end of May, when Government abruptly announced the retail price of petrol and diesel drastically increased to RM 0.72 and RM 1.00 respectively.

On the 5 June 2008, the RM 1.92 per litre of petrol was increased to RM 2.70. Crude oil price was trading at almost USD 140 per barrel. Today, the price of crude oil went down to just below USD 113 per barrel. It is expected that it will go down to USD 105 per barrel by end of the year.

unspun

Indonesia

3 responses to “Can the price of petrol drop in Indonesia?”

matthew

August 21, 2008 at 4:48 am

2.7 MYR is 7,500 rp. A fall to 2.1 MYR would be 5,800 rp.

So pretty much the same price as in Indonesia.

In other words, the Indonesian government did not increase the price enough. Too much money spent on subsidising imported oil.

Maybe they will eventually remove the subsidies and price fixing and let the price move freely. That assumes that prices fall enough to eliminate the subsidy.

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Martin Manurung

August 22, 2008 at 3:09 pm

Unspun, I remember once SBY decreased some of the oil prices before 2005. Very small proportion, though. That’s why you don’t realise it, I think. 🙂

Will the government decrease the oil prices? Well, according to the law, the government must “match” the domestic prices to the international level based on the Singapore’s MOPS. Thus, if the oil prices fall below the assumption in our state budget, then the government must decrease them.

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bayi

August 22, 2008 at 8:44 pm

A miserable 15 sen drop per litre. This was just announced this afternoon. This means RM2.55 per litre effective midnight tonight.

I am disappointed.

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