Indonesia's decision to hike prices for selected non-subsidized fuels may push more consumers toward subsidized grades, economists warned, raising concerns over tighter supply and higher fiscal pressure, the South China Morning Post reported Wednesday.
State energy firm Pertamina increased the price of RON98 petrol (Pertamax Turbo) to 19,400 Indonesian rupiah per liter from 13,100 rupiah, while diesel products such as Dexlite and Dex also rose sharply. The price of 12kg LPG cylinders was also increased to 228,000 rupiah from 192,000 rupiah in key regions, reportedly.
Analysts said the wider price gap between subsidized and market-rate fuels could encourage consumers to switch to subsidized products, adding pressure on government support programs, the news outlet said.
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