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June 17, 2013

comparison of fuel prices worldwide June 2013

Comparison of fuel prices worldwide June 2013 

Fuel prices around the world, June 2013

Think your gas is expensive ? 

Here you can find information about fuel prices around the world. We present unleaded gas and diesel prices by country.

Fuel prices differ considerably across countries. The prices of fuel in some of the petrol producing states are less than a few dollar/euro cents for the liter. In contrast, in some European countries, a liter of gas cost more than 2 dollars. Prices also change over time. However, price movements are similar across countries. They either increase or decrease everywhere.

The data are drawn from a variety of sources including official government materials, oil companies, online resources specializing in gas prices, and others.

In Indonesia 
Fuel price hike by the end of June 2013  
 Eventually the Government  through Energy and Mineral Resources Minister Jero Wacik officially announced that the new fuel prices would take effect on Saturday.
“The new price for Premium fuel is Rp 6,500 (65 US cents) per liter, up from Rp 4,500,(45 cents)  and diesel fuel will cost Rp 5,500 per liter, also up from Rp 4,500 per liter,” Jero Wacik said in a press statement aired by Metro TV on Friday night.
The announcement came four days after the House of Representatives passed the draft bill of the 2013 revised state budget into law in a plenary session in Jakarta on Monday, in which the government had stated its fuel-price increase proposal.
Coordinating Economic Minister Hatta Rajasa, who attended the press conference, said the plan to raise fuel prices was meant to save the country’s economy.
Following the new policy, as much as Rp 9.3 trillion will be allocated for temporary direct cash assistance (BLSM), which will entail payments of Rp 150,000 per month being distributed to 15.5 million low-income households in Indonesia for four months 
The government of President Susilo Bambang Yudhoyono is mulling over raising gasoline prices 44 percent, from 4,500 rupiah, or 45 cents, a liter, or 0.26 gallon, to 6,500 rupiah to help close a widening budget deficit. The country’s Finance Ministry has said spending on fuel subsidies could reach $23 billion in 2013, compared with about $20 billion last year, if urgent action is not taken. 
The House of Representatives just approved the government's proposed fuel-price hike as it endorsed the draft bill of the 2013 revised state budget in a plenary session in Jakarta on Monday. June 17th. 2013.that will pave the way for the government to announce the first price hike since 2008.
Under the revised state budget, the price of fuel will increase by 44 percent to Rp 6,500 (66 US cents) per liter.

In the meantime the Vice President Boediono said he was sure that the temporary direct cash assistance or locally called BLSM would not be able to influence the political choices of people who benefited from the assistance.
“So, for those who still worry about the assistance, they may need to think again about that Rp 150,000 (US$15.2) monthly cash aid for four months; it actually means nothing for our constituents,” 
 He further said the government would make sure that the social protection policy will run well and go to only the targeted beneficiaries. Another source from the finance ministry  said it might be conducted  by the end of this month.
Boediono said the BLSM policy was necessary because the government would increase the subsidized fuel price. Such an increase might lead to a rise in the price of basic commodities that would further lead to economic hardship among the poor .
During the session, 338 legislators voted in favor of the bill, while 181 lawmakers rejected it.
Fuel prices have long been a flashpoint issue in Indonesia, with economists arguing that huge government subsidies are damaging Southeast Asia's top economy. 

International lenders like the World Bank have urged the Indonesian government to eliminate subsidies altogether, as savings could go to crucial social programs, including health care, as well as much-needed infrastructure investment.  

Although Indonesia has plenty of oil production fields and is among the top 25 oil-producing nations in the world, it is a net importer of petroleum. Gasoline is so heavily subsidized that at the end of 2012, the country had the lowest fuel prices of any net oil-consuming nation in the world, according to the World Bank. The second-lowest was the United States, where a gallon sold for $3.29 on Dec. 31 — nearly twice as much as in Indonesia. 

Economists and business leaders have urged the government to treat the decision to reduce fuel subsidies only as a first step in a pricing reform project, saying the job is not done until subsidies are phased out entirely.
Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said on Tuesday that the fuel price increase is long overdue, urging the government to swiftly announce the timing for the price increase. “The waiting makes people anxious,” he said.
Government officials said they would announce the timing of the fuel price increase by Friday, after the House of Representatives on Monday approved the 2013 revised budget. The budget contains social spending to reduce the impact of the fuel price increase on 15 million poor households.
The subsidized gasoline price will rise to Rp 6,500 a liter and subsidized diesel to Rp 5,500 a liter. Both are sold at Rp 4,500 (45 cents) a liter currently, less than half their market price.
Suryo maintained his previous view that the government should entirely phase out fuel subsidies as soon as possible. “The money for subsidies is better used for improving infrastructure,” he said.
“Fuel subsidy is like a cancer; the longer we wait to treat it the sicker we become. The treatment will be painful but it will make us stronger and healthier,” Suryo said.
David Sumual, chief economist at Bank Central Asia, agreed with the need to phase out the subsidy completely. “I think Indonesians can do it. Many countries with lower income per capita than Indonesia’s have done it,” he said.
But he doubted that the government would remove the subsidy completely anytime soon, saying politics played a big role in decision making.
He said the government should revise its subsidy scheme by introducing a maximum level of spending every year.
“Let’s say the subsidy is set at Rp 100 trillion, then after the spending has surpassed that level, the price of subsidized fuel will be adjusted,” he proposed.
Dian Ayu Yustina, an economist at Bank Danamon, said: “I think Indonesians still need a fuel subsidy, but over the long-term it needs to be phased out.”
Dian and David said a decision in 2009 to cut the price of subsidized fuel to the current level ahead of a general election was politically motivated and warned future administrations not to take similar measures because it could send negative signals to investors.
Kadin’s Suryo said the government must avoid any temptation to reduce the fuel price. “With the current crude price, it’s only logical for the future government to raise it further,” he said.

Source the Jakarta Globe 

Comparison of Fuel Prices worldwide

The price of gasoline in Indonesia is 0.73 EUR per liter which is 35% lower than the average world price of gasoline: 1.12 EUR. The price of diesel in Indonesia is 0.83 EUR per liter which is 18% lower than the average world price. 

Gas prices around the globe
Gasoline prices by country  2013
This ranking sorts 60 countries by price, earnings, needed to buy a gallon and annual income spent on fuel.

While Americans and Europeans  bemoan the cost of gasoline at the pumps, people in some other parts of the world enjoy filling up their tanks cheaply thanks to subsidies provided by wealthy, oil-rich governments. But fuel subsidies tend to benefit the rich (who own motor vehicles) more than the poor. In Indonesia ,the government has spent hundreds of trillion rupiahs since early 1980's  for fuel subsidies in which reportedly 80 percent of it is to support  and benefit the upper middle income group and the rich for their 4 wheel vehicles, in the meantime the IMF estimated that 65 percent of the fuel subsidies in Africa benefit the richest 40 percent of households (2010). Only 8 percent of the $410 billion in government fuel subsidies worldwide went to the poorest 20 percent of the population (International Energy Agency - estimates, 2010).
The British insurance firm Staveley Head has released the latest list of the world’s gas pump prices. 

1. Venezuela- $0.18 per gallon ($0.05 per liter)

 US liquid measure for one gallon = 3.79 liters

British  gallon =  4.55 liters

With elections looming in October 2012, President Hugo Ch├ívez knows that raising gasoline and diesel prices would be a risky move politically.  His presidency is already threatened by his deteriorating health, providing a unique opportunity for the opposition’s candidate, the telegenic Henrique Capriles Radonski, to replace the ailing leader.  The last time the government attempted to raise gasoline prices in 1989,l riots ensued, and hundreds of people died. Venezuelans are likely to continue paying less for fuel than bottled water for years to come.

Source: Comparison of fuel prices worldwide

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