Friday, May 27, 2016

Soeharto's Footsteps in 1968, Gasoline Prices Less Than a Cup of Coffee

"One liter gasoline prices are still much lower than the price of one cup coffee or pack of cigarettes," Soeharto, Indonesia's President said in 24 April 1968 as quoted from Jejak Langkah Pak Harto books. The statement come out simultaneously with Suharto policies raise the price of fuel. From Rp. 4,- to Rp. 16,-. He announced through Televisi Republik Indonesia (TVRI), an Indonesia's government TV Channel.

Many people claim that gasoline prices in Soeharto regime is cheap,  by comparing it with the current price.

Gasoline in my regime Rp. 700, now how much son?

Than, said that gasoline price in Soeharto regime in 1992 can't called cheap. Katadata claim it based on the gasoline price more expensive than crude oil. At that time, when premium Rp 550 dan solar Rp 300 each liters, world crude oil only US$ 17 -20 each barels, or equivalent with Rp 290 – Rp 350 each liters for Rp 1.995 –Rp 2.036 each dollars. Katadata even mention that calculation has not been associated with the production price.

In the reform era, Katadata said that gasoline price in Indonesia cheaper than world crude oil. This condition start from 2010 through 2013.

Comparison of fuel prices and crude oil prices in the reform era.

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