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The government has announced an increase in fuel prices. Premium gasoline price to Rp 6,500 per liter, and diesel to Rp 5,500.

Did you know that the price of premium fuel this time through the highest price in history, namely to Rp 6,500 per liter. This is certainly in line with the rate of inflation and the rise in crude oil prices from year to year.

Based on history, the most expensive premium fuel prices earlier in the level of Rp 6,000 per liter, raised on May 24, 2008 from the previous price of Rp 4,500 per liter.

As for the latest diesel price is not the most expensive, because the previous government had never issued a policy to sell diesel at the price of Rp 5,500 per liter on May 24, 2008 from Rp 4,300 per liter.

The government has officially raised fuel prices for the premium subsidy to Rp 6,500 and Rp 5,500 per liter of diesel. The Government recognizes that this is a very tough decision but should fuel prices rise.

"It was a very difficult choice and last choice alternative. Fuel price adjustment must be accompanied accelerated program and expansion of social protection in order to protect our communities," said Coordinating Minister for the Economy Hatta Rajasa when opening announcement of fuel price hike in his office.

Hatta explained the background to this policy include domestic fuel consumption continue to grow while domestic oil production continues to decline. So has resulted in potentially increase fuel subsidies, so that Indonesia had to import fuel Rp 300 trillion. The fact that if not taken then the fuel price hike policy will make the budget deficit is almost touching the 3% deficit which is the upper limit.

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