Fuel Price Hike to Impact Passenger Transportation Services

Transportation is one of the sectors that will be affected by the increase in subsidized fuel prices. This is because the sector is highly dependent on changes in fuel prices.

Based on data from the Central Statistics Agency (BPS), the consumer price index (CPI) for transportation expenditure increased by 5.01% to 109.88 in August 2022 compared to the end of December 2021. This means that the transportation expenditure group experienced inflation of 5.01% (year to date/ytd). Similarly, compared to August 2021, the transportation expenditure group recorded inflation of 6.62% (year on year/yoy).

The passenger transportation services sub-group experienced the highest inflation and led the inflation in the transportation sector, reaching 10.32% (ytd) and 16.85% (yoy). This was followed by the sub-group of private transportation equipment operation, which recorded inflation of 3.61% (ytd) and 3.9% (yoy).

Meanwhile, the vehicle purchase sub-group recorded inflation of 3.29% (ytd) and 3.73% (yoy). Then, the goods delivery services sub-group experienced inflation of 1.55% (ytd) and 1.59% (yoy).

For information, the government has increased the price of solar by Rp1,650 per liter (32.04%) to Rp6,800 per liter starting September 3, 2022. The government also increased the price of Pertalite (RON 90) by Rp2,350 per liter (30.72%) to Rp10,000 per liter.