Jakarta, CNBC Indonesia – The latest world crude oil prices are like a double-edged sword for Indonesia. The recorded price is still high, influenced by the current geopolitical conditions between Israel and Hamas Palestine, which will have two different impacts, both profit and loss.
It was recorded that today’s WTI crude oil price opened up 0.46% at US$87.06 per barrel, likewise Brent crude oil opened up 0.29% to US$89.91 per barrel.
The Director General of Oil and Gas (Dirjen Migas) of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, said that an increase in crude oil prices could be beneficial for the upstream oil sector. However, on the other hand, the downstream sector is not profitable and could even be detrimental to the country if oil prices continue to soar to more than US$ 100 per barrel.
“So if oil prices rise, we are waiting for profits upstream, but downstream are also affected. So, if it is too high, around US$ 100 (per barrel), it is not profitable for the country, for the government,” explained Tutuka to CNBC Indonesia. in the Energy Corner program, Tuesday (17/10/2023).
The current world crude oil price, said Tutuka, is still safe. However, if the increase is unstoppable, it will have an impact on domestic fuel prices. “If it is related to the policy regarding how to price oil, what was previously said was the Pertalite fuel price. Pertalite is included in JBKP, right? So there is a separate decision from the government, from the Minister to determine that,” he stressed.
Tutuka said this was done so as not to burden the state’s finances and also so as not to burden the community. “So that’s another thing that is used or needed to help society so that it remains economically stable,” he concluded.
[Gambas:Video CNBC]
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(pgr/pgr)