Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Are Fuel Prices Increases on the Way Up?
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Are Fuel Prices Increases on the Way Up?

Indonesia Struggles with the Threat of Higher Energy Costs and a US$10.8 Billion Annual Fuel Subsidy Strangling the Budget.


Bali News: Indonesia, Fuel subsidies, Bambang Brodjonegoro, gasoline costs, economy
Click Image to Enlarge

(5/23/2011)

Tempo Interactive reports that the finance minister is calling upon the energy and mineral resources minister to urgently increase the price of subsidized fuel.

With world oil prices surpassing US$100 a barrel the price assumption in the national budget are losing their relevance and threatening the government’s desire to stay within budget parameters. A strengthening Rupiah has further complicated the budgetary landscape, affecting the assumptions in place for foreign exchange earned from fuel exports and the substantial burden of the generous fuel subsidies provided by the Indonesian government amounting to US$10.8 billion annually.

That the government must increase the cost of fuel in Indonesia seems inevitable as many economic experts question whether the government can continue to subsidize to the tune of 66.8% the cost of a liter of gasoline at the filling station. Compared to the U.S.A. where fuel has surpassed US$4.00 a gallon, the equivalent cost for a gallon of gas in Bali is only US$1.95. The comparison with European prices, which are even higher than the United States, is even more dramatic.

In terms of the average cost of gasoline around the work Indonesia is the fifth cheapest place in the world to buy gasoline after Turkmenistan, Iraq, Iran and Venezuela.

Indonesians pay 77% less than the worldwide average for fuel. Reflecting this, the Fiscal Pricing Board acting chief, Bambang Brodjonegoro, complains that Indonesian fuel prices are the lowest in East Asia and Australia. This means Indonesian fuel is cheaper than the price paid by consumers in the Philippines, India, Malaysia and Vietnam. Said Bambang: "In Vietnam, where GDP per capita is half of Indonesia’s, fuel oil is US$1 per liter." He reminded that many countries are eliminating fuel subsidies, especially when those countries, like Indonesia, have become net importers of oil.

Adding to Indonesia’s economic woes, fuel production in Indonesia is declining averaging 870,000 barrels a day, a rate 7.7% less than last year.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Making Bali Arrivals Easier
Bali Eliminates Arrival-Departure Cards at Immigration Check Points.
(3/27/2015)
Rao Reign at Two Resorts
Uday Rao Promoted to Manager Two Four Seasons Resorts in Bali
(3/27/2015)
Ubud, Bali Among the World’s Best
Trip Advisors List Ubud, Bali Among the World’s Top 25 Tourism Destination
(3/27/2015)
Travel Accessible to All
Agoda.com Performs Worldwide Review of Accessibility for Handicapped Travelers.
(3/27/2015)
‘Till Middle Kingdom Come
AirAsia Indonesia Eyes Direct Flights from Medan and Bali to Mainland China
(3/28/2015)
The Language Barrier
Indonesia Backtracking on Plans to Require Foreign Workers Speak Indonesian
(3/28/2015)
Sinitic Solutions to Semantical Problems
Tourism Minister Wants to Allow Chinese Tour Guides to Work in Bali
(3/28/2015)
How to Curry the Indonesian Travel Market
Indian Tourism to Bali Held Back by Lack of Direct Flights
(3/28/2015)
Workers with Warranties
Bali Governor Support Competence Certification for Tourism Workers in Indonesia
(3/28/2015)
When it Isn’t Reciprocal
Clause in Immigration Law May Delay Plans to Add 30 Countries to List of Visa-Free Countries to Indonesia
(3/28/2015)
Bali Still in Fashion
Bali by the Numbers: No Sign of an Australian Boycott as Bali’s Arrival Figures for February Increase 21%
(3/22/2015)
Nyepi Takes a Toll on Tolls
Bali Toll Road Estimated to Have Cost US$24,000 in Toll Fees Due to Nyepi Closure
(3/22/2015)
All [News]!