ID :
42662
Mon, 01/26/2009 - 12:27
Auther :
Shortlink :
https://www.oananews.org//node/42662
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GOVT MUST BE TRANSPARENT WITH REGARD TO OIL PRICE CALCULATION
Jakarta, Jan 26 (ANTARA) - The House of Representatives (DPR)'s Commission VII on energy affairs has urged the government to be transparent in its oil price calculations, particularly on the Indonesia Crude Price (ICP).
The Commission VII chairman, Erlangga Hartarto, of the Golkar Party Faction, said in the official DPR website on Sunday that legislators needed to know the accurate calculations of the ICP.
"The oil and gas director general has told us that the ICP price is still set at a range of US$40 to US$60 per barrel," he said during a hearing with state-electricity company (PLN) over the weekend.
He said that the various calculations of the oil prices should be taken to the next hearing of the DPR with the minister for energy and mineral resources.
Hartarto said his commission needed to know immediately the exact figures of the various price calculations, not only the US$40 per barrel.
In the meantime, Effendi Simbolon, other Commission VII member of the Indonesian Democratic Party of Struggle (PDI-P) Faction called on the government to immediately lower the basic electricity tariff because the prices of fuel oil had been cut.
Director General for Electricity and Energy Utilization J Purwanto said the cut would be adjusted to the assumptions on the rupiah exchange rate and Indonesian crude price in the 2009 state budget.
"Based on the initial assumptions (the ICP at US$80 a barrel and the rupiah at Rp9,400 per US dollar), the subsidy allocation for electricity in the 2009 state budget is set at Rp45.96 trillion," he said.
But as the assumptions would be changed, namely the ICP at US$45 per barrel and rupiah at Rp11,000 per US dollar, the subsidy for electricity in 2009 would be reduced to Rp41.59 trillion, he said.
PLN president director Fahmi Mochtar said that his company predicted it would be able to save Rp20 trillion if it cut its oil consumption by 3.3 million tons.
The Commission VII chairman, Erlangga Hartarto, of the Golkar Party Faction, said in the official DPR website on Sunday that legislators needed to know the accurate calculations of the ICP.
"The oil and gas director general has told us that the ICP price is still set at a range of US$40 to US$60 per barrel," he said during a hearing with state-electricity company (PLN) over the weekend.
He said that the various calculations of the oil prices should be taken to the next hearing of the DPR with the minister for energy and mineral resources.
Hartarto said his commission needed to know immediately the exact figures of the various price calculations, not only the US$40 per barrel.
In the meantime, Effendi Simbolon, other Commission VII member of the Indonesian Democratic Party of Struggle (PDI-P) Faction called on the government to immediately lower the basic electricity tariff because the prices of fuel oil had been cut.
Director General for Electricity and Energy Utilization J Purwanto said the cut would be adjusted to the assumptions on the rupiah exchange rate and Indonesian crude price in the 2009 state budget.
"Based on the initial assumptions (the ICP at US$80 a barrel and the rupiah at Rp9,400 per US dollar), the subsidy allocation for electricity in the 2009 state budget is set at Rp45.96 trillion," he said.
But as the assumptions would be changed, namely the ICP at US$45 per barrel and rupiah at Rp11,000 per US dollar, the subsidy for electricity in 2009 would be reduced to Rp41.59 trillion, he said.
PLN president director Fahmi Mochtar said that his company predicted it would be able to save Rp20 trillion if it cut its oil consumption by 3.3 million tons.
