Disclaimer : this post is really not entertaining (if you care)
Today our beloved lovely government of Indonesia was announcing the cut-off price of gasoline. The previous price was six thousand rupiahs per liter and now subtly declining into 5500 rupiahs per liter. Nah blah nah blab la, how unfair they are! I was so remember when it was the escalating price of gasoline back several months ago, the Indonesian government is whining all over the media that they could not afford to subsidy the oil price anymore. The gasoline was only enjoyed by only a bunch of fortunate folks, so they don’t think that it is justifiable to give gasoline subsidy.
AFTER them finally escalating the price into a SHOCKING 6000 rupiahs per liter, they said that it is already the price of the market (with a condition of $120 oil per barrel). And they are not showering a subsidy towards the gasoline anymore. . . .
And now ladies and gents, the oil price was like only around $50 per barrel!!!
It has down for fifty percent, and here in our beloved lovely country of Indonesia what we had is only 500 rupiahs (less than 10%) reduction.
HOW UNFAIR!!!
Okey, maybe I’m not that good with numbers but when it comes to a discounted price and stuff, I’m mastering it (thanks to Surabaya big sale).
Back several months ago when oil price was $120 per barrel, the government setting the price for only Rp.6000 per liter instead of the actual price Rp. 7594 (with assumption we don’t know the production + distribution cost process thingy wingy, but in this simple calculation those info won’t be necessary).
When it comes today’s oil price at $53 per barrel, the actual price per liter will be Rp.4193, . .so, if we are using their very own scheme, today’s price should be set up at Rp.3312 per liter ! (See the calculation process)
Fiuuuhh. . .
So what we know now, the government of Indonesia is trying to reduce their subsidy even more. In the calculation we have no idea how much is the actual cost of production and distribution per liter gasoline, they end up selling it at Rp.6000.
With the Rp.2200 differences (Rp.5500 - Rp.3312), Indonesian government was saving those amounts in every liter gasoline sold. UNLESS in this hectic situation of global crisis the production and distribution cost of gasoline were escalating at the rate of Rp.2200, then it is justifiable for the government to sell the gas at the price of rigid Rp.5500.
By the way maybe now is the time for oil sheikh to stop buying buggati veyron. . oh well. .
Tapi aku kok lebih suka pemerintah gak nurunin harga BBM ya, keknya kalo dinaikin..diturunin lagi, ntar naik lagii..kok plin-plan
Yeahh they stop buying buggati, tapi dah pesen super yatch
im not good at numbers too so i decide to trust in you that we pay too much (kelebihan dua rebu perak) for gasoline. uff. dunno what to say. thanks for the information, you notice that very good!
Hahaha.. great thought! But you forgot one prominent factor if we get crude oil into discussion: we have our govt subsidized nearly 35% of its actual international retail cost. Let me add something here:
Anyway, 1 barrel equals to 158.98 liter. And there are several components of the retail price of gasoline: crude oil cost is about 50% of the retail price, tax is about 15%, refining costs and profit are about 20%, distribution and marketing costs are about 10%, and the others are 5%. (Based on: http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/)
Case 1
1 barrel of crude oil costs USD 120, or USD 0.7548/liter, or Rp7548/liter, assuming 1 USD = Rp10000. Based on the assumptions above, that cost is responsible for 50% of gasoline retail price and therefore the ideal retail price for gasoline is Rp15096/liter. And at what price is gasoline sold in Indonesia? Rp6000/liter.
Case 2
1 barrel of crude oil costs USD 53, or USD 0.3333/liter, or Rp4167/liter, assuming 1 USD = Rp12500. Based on the assumptions above, that cost is responsible for 50% of gasoline retail price and therefore the ideal retail price for gasoline is Rp8334/liter. And at what price is gasoline sold in Indonesia? Rp5500/liter.
So, come on. Please give them a break. At least, let’s us give them a high-five!
Ha3,i’m wth u mchael,let just gve them a lil cheerin high5,coz i believe tht they do clculate well.but smhw i dnt undrstand wth em,they put a dscount but limit the supplies, u guys in java may smile and turn ur wheel to a gas stop,but we here in kalses was just suffered frm the lackness of gas,u will find a hundred of vehicle queing in a gas stop while other just put a ‘bensin habis’ sign in their gate. We dnt have choises btween ngantri sejam or beli eceran 8rb.
Gov is ths wht u called a price reduction?owh pleez
ini indra..?? beethoven?