Saturday, November 08, 2008

Equality? What equality?

Kompas editorial today admits that the price of subsidized fuel is still below its economic price. But it quickly says that the pricing of domestic fuel should consider "fairness, equality, and responsibilty". Well that is exactly what you can achieve when the price is at its 'economic level'. The editorial accuses the government as being ambiguous. The same impression is exactly found in the editorial's tone.

As for the headline, Kompas reports that the government will also cut the price of subsidized diesel oil. It makes it even more obvious that the current administration is desperately seeking for popular votes using the oil politics.

A more rational way, albeit unpopular would be to announce that the government will let the domestic price follow the world market price. In fact this time is very apt to do it, as the price trend is on the decreasing path. However the public should be made fully aware that when the price increases, the domestic price will follow suit. In other words, no more subsidy. And headache.

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