Jumat, 14 Desember 2012

Debate Material : Fuel Price

di 14.47


ü      Support is give approval, comfort, or encouragement .
ü      Rise is increase in number, size, amount, or degree .
ü      Fuel is material such as coal, gas, or oil that is burned to produce heat or power .
ü      Price is the amount of money expected, required, or given in payment for something

There are a few reasons fuel have raised:
•The world economic outlook. "Economic growth in the U.S. is better than expected — not great growth, but taking small steps forward," says David Ginther, manager of the Ivy Energy fund. A resolution to the Greek debt problem could mean a shallower recession in Europe than was expected at the start of 2012.
•Emerging markets. Most people who have traded in a horse or a bike for a car have been glad they did. In emerging markets, such as China and India, car sales are booming — as is petroleum consumption.
•World unrest. Troubles in Syria, Libya and Iran have raised the fear of war in the Middle East. Others worry about an Arab Spring uprising in Nigeria, where about half the people are Muslim. 

The retail prices of gas oline in US is 76 cents per litre
The retail prices of gas oline in Indonesia is 79 cents per litre
The retail prices of diesel in US is 108 cents per litre
The retail prices of diesel in Indonesia  is 51 cents per litre
Gasoline prices are influenced by a mish-mash of speculation, demand, refining capacity, corporate profit, regulation, subsidies and the economy.
According to the household survey (SUSENAS) in 2009, 40% of total fuel subsidy benefits are received by 10% of the richest population, and the poorest 10% of the population only enjoyed 1% of the benefit.

NBC segment that “A prolonged increase” in gas prices “can drive up inflation and drive down hiring,” says the Wall Street Journal. According to NBC, “analysts say that every 50 cent increase in gas prices takes almost $150 billion out of the rest of the economy. That's bad news during a struggling recovery.”


The Government subsidy on the prices of fuel has kept the prices low. But this subsidy has led to defects in government budget. This in turn effects plan out lay for other projects. It lhas come to a stage that the governmnet is no longer in a position to provide this subsidy.So the government is deregulating the prices of fuel.
Now the prices will be according to the international market conditions.Once the government remove this subsidy it will have money to spend for other economic growth this will in turn will bring down the negative inpact of fuel price rise. But till such time the price rise will add to inflation. and prices of other commodities will go up. By deregulating the market the governemnt is looking for long term growth.

Communities that have assets Because the value of its assets would go up by itself. Especially for holders of precious metals like gold or silver. Opportunity for you to buy gold before the rise in fuel prices, which are usually followed by the gold price crawled after the fuel price hike.
And what about the owner of the property such as land or buildings. The price increase will raise property values ​​in the form of rent increases in value when the property is leased or sold or the price increase when used as collateral.
So the rise in fuel prices also had a positive impact. With a record of other variables did not change and we hope the situation does not last long down the government and the private sector may be able to take prompt and appropriate steps to shorten the down will appear. Hopefully the storm will quickly pass.

when fuel prices are raised, it will have an impact on the economy, especially SMEs (micro, small and medium enterprises) and so on. among others
- Increased production costs due to: for example the price of materials, load transport, etc..
- The financial conditions of SMEs to become brittle, then the economy will cut off the chain.
- Price of goods to rise
- There was rise in unemployment. With the rising cost of operations, the possibility of layoffs will occur.

More energy production would help address rising gas prices. Action is underway in the House this week on an energy and infrastructure jobs bill that removes government barriers to energy production to address high gas prices and create more than a million new jobs. And the House has already passed several bills that would lift the president’s energy moratorium and increase production.

Economic Impact
On the economic front, the fuel price hike will certainly raise the cost of daily operations. Influence is felt is the escalating cost of road transport, which will be followed by a rise in the cost of electricity and water, the increase in toll rates. And in turn will impact on the rise in basic food commodities (nine basic).
When this increase was not accompanied by an increase in income, it will increase the number of poor people in Indonesia. When a head of household with two children at the primary / junior, has a monthly income of one million five hundred thousand. Then the cost of living increase by 15 to 25 percent per month will certainly add to the amount of their debt. Assuming a monthly requirement of 1.6 million, will increase the amount of debt of 200 to 300 thousand a month. Not to mention when added to the rising costs of education, then we will see more of the poor in this country.
In industry, will add to the cost of

transporting raw materials and finished goods on distibusi to the public on one side. On the other hand, the level of purchasing power will decline. This can lead to the accumulation of goods produced. Where this is not the case of repair, in the future will increase operating costs (overheat production), so it will be a reduction in the number of workers and increase unemployment in Indonesia.

the impact for different types of community
Private employee or civil servant would be perceived impact of fuel price increase is quite burdensome for fixed-income communities because the cost of living will increase, especially for basic needs. Problems encountered will feel lighter when there is an increase of salary or wages. But what often happens is always level wage increases below the level of price increases.
-  The impact of rising fuel entrepreneurs will feel heavy at an early stage, why? For the entrepreneur must raise the selling price of products sold to adjust the cost increases that arise, the situation is further aggravated by the decline in purchasing power, so it will temporarily decline in sales, until when? until a new equilibrium point, which is expected to occur is an increase in public wages. Here demanded resilience and tenacity of the entrepreneur.
- People who have a debt increase of fuel provides a unique effect for people who have debt or credit in the Bank. Price increases due to rising fuel prices caused the value of money to be dropped. Similarly, the Bank's total liabilities, total liabilities at the Bank of relatively still will feel lighter due to the falling value of money.

The U.S. has been importing oil since at least 1949, when Truman was still in office. Currently, the U.S. produces 51% of its petroleum and imports the rest. About 25% of imported oil comes from Canada, with Saudi Arabia accounting for 12%. But world oil production has increased since last year.

Political Impact

Politically, with the rise in fuel prices will result in increasing the political cost to be paid and the rampant abuse of the organization of power that occurred in this country.
Is an open secret, giving a number of "hidden costs" in pushing through an ordinance. Dana is certainly not written in the state administration sheets. But proceeded in a "reasonable" in the state administration.
With the increase in fuel demand would amount requested will also be greater, with the excuse to avoid the rising turmoil in the community and also to "pacify" the party members and sympathizers.
On the one hand, the magnitude of these hidden costs will impact the budget reductions in other sectors, often related to social welfare budget, which is considered "not important". So that the possible number of people who served in the welfare field will be much reduced.

When this happens, then the reduction in the cost of such welfare, health and infrastructure facilities. This will make the lower class people who expect aid to be worse off.
Compensate the impact of rising fuel such as direct cash assistance (BLT) could not have a real impact for the community. In addition to missing the target because too many pieces in it.
When these conditions persist, it could cause unrest that led to a variety of social and political turmoil in the community.
As we read in various media, the current society we are in good temperament. So if there is a little problem involving officials and the community can result in civil unrest.
On the other hand, will also make a strong reason for his "political opponents" of the ruling party to discredit the government, with one of the reasons for "not protecting" the public interest and less wise in difficult conditions to raise fuel prices.
It is also supported with messy problems in government, including the handling of corruption are not clear at the end of the tip and base.
Various reasons mentioned above could be one weapon in discrediting the government and ruling party today. In the next period can be a means to perform empeachment against the president.

You might think that higher gas prices are because of lower production, but you'd be wrong — especially if you were talking U.S. production. There are 1,272 oil rigs drilling in the U.S., vs. 798 a year earlier, according to Baker Hughes. The U.S. produced 8.88 million barrels of oil per day at the end of January, says the EIA, vs. 8.27 million a year earlier.

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