BI predicts global crude prices to increase to US$47/barrel

Jakarta (ANTARA News) - Bank Indonesia (BI) has predicted average global crude prices to increase to US$47 per barrel this year, prompting the government to adjust domestic fuel prices.
"(The imminent) global crude prices will have a direct impact on the prices of direct commodities and those of commodities in general," BI Governor Agus Martowardojo said, after a coordination meeting with the government, here on Wednesday.
Hence, the global crude price hike would not be significant, since the result of a study conducted by BI showed that the global crude prices averaged $45 per barrel at the end of last year, he added.
The imminent global crude price hike has become one of the areas of BIs attention because it would put pressure on the inflation rate from administered prices, he noted.
Just in January 2017, inflationary pressures from the administered prices have gone up due to an increase in fees on vehicle ownership documents (STNK) and 900 VA electricity tariffs, he stated.
The global crude price hike would undoubtedly prompt the government to adjust domestic fuel prices to their economic prices, he remarked.
BI feared that if the domestic fuel prices were raised, they would have an impact on the inflation rate from volatile food prices, he asserted.
In fact, BI wanted to keep down the inflation rate from volatile food prices to 4-5 percent from 5.9 percent last year, he said.
"If the fuel prices were adjusted, volatile food prices will come under pressure," he added.(*)

Comments