Fuel Price Hikes To Increase Poverty Rate In Maluku

Ambon, Maluku, Nov 20 (Antara) - The Prosperous Justice Party (PKS) for Maluku has predicted the poverty rate will increase in Maluku Province as a result of subsidized fuel oil price hikes. "Fuel price hikes trigger prices of commodities weakening the purchasing power of the people," Suhfi Madji, the chief of the PKS Faction of the Regional Legislative Assembly (DPRD), said here on Thursday. He said that the increase in the prices of subsidized fuels would increase the number of new poor people as commodity prices would soar. Based on the Central Bureau of Statistics (BPS), the number of poor people or people whose monthly spending is below that of the poverty line was recorded at 315,990 in March 2014. Compared with those in March 2013, the number of poor people last March dropped by 0.36 percent but it increased in number by 120 people. Thus, the number of poor people is predicted to increase following the government`s decision to raise subsidized fuel oil prices. On Monday night (November 17), President Joko Widodo (Jokowi) announced the increase in the price of premium gasoline to Rp8.5 thousand per liter from Rp6.5 thousand and that of automotive diesel oil to Rp7.5 thousand per liter from Rp5.5 thousand.