BBM Price Hike: Cities with the Highest Public Transportation Fare Increases in July 2022 (Year-to-Date)

Changes in the price of non-subsidized fuel oil (BBM), following the global crude oil price increase, triggered inflation in the transportation expenditure group, specifically in domestic passenger transportation services. As a result, public transportation costs have increased throughout the year until July 2022.

Based on data from the Central Statistics Agency (BPS), the Consumer Price Index (CPI) for the public transportation services sub-group nationally increased by 11.55% (year to date/ytd) to 122.75 in July 2022, compared to 110.04 in December 2021.

Of the 90 regencies/cities surveyed by BPS, 48 experienced an increase in public transportation costs above the national average. The remaining 42 regencies/cities had public transportation inflation below the national average.

The CPI for public transportation services in Bima City, West Nusa Tenggara, increased by 72.49% (ytd) in July 2022 compared to the end of last year, which stood at 119.02. This means that public transportation costs in this city increased by 72.49% during the January-July period this year. This increase in transportation costs in Bima City is the highest compared to the other 89 regencies/cities.

The regencies/cities with the next highest increase in public transportation costs are Tanjung Selor Regency (66.05% ytd), followed by Baru City (63.18% ytd), Bau-Bau City (60.83% ytd), Tanjung Pandan Regency (60.41% ytd).

Furthermore, the increase in transportation costs in Pangkal Pinang City was 59.81% (ytd). This is followed by Lhokseumawe City (49.86% ytd), Gunungsitoli City (49.77% ytd), Mataram City (46.01% ytd), and Meulaboh City (45.01% ytd).

For information, the government is considering raising the price of subsidized fuel, namely Pertalite and Solar. Currently, Pertalite is sold at Rp7,650 per liter, while its economic price is Rp14,450 per liter. Thus, the government bears a subsidy of Rp6,800 per liter.

Similarly, subsidized solar is sold at Rp5,150 per liter, while its economic price is Rp13,950 per liter. This means the government bears a subsidy of Rp8,800 per liter.