DBS Bank senior economist Radhika Rao said the affected fuels accounted for about 7 per cent of domestic fuel sales and 7.5 per cent of energy consumption in the transportation sector in 2023.
She said alongside monetary policy adjustments, fiscal policy also needed to adopt a defensive stance to support the economy.
Masgal Carta, a worker in Bandung, West Java, said the sudden price rise was going to further squeeze his finances. “Honestly, I was quite shocked this morning when I found out that fuel prices had gone up, because my motorbike also uses Pertamax,” he said.
“My income has stayed the same, prices of basic goods have already started to rise, and now fuel, our main means of transportation to get to work, has increased suddenly,” Masgal told Reuters.
The price of the subsidised 90-octane fuel known as Pertalite was unchanged, Pertamina said.
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