By: Titis Lintang )*
The highest retail price (HET) for cooking oil was revoked so that it returned to its economic value. The revocation of HET is carried out in order to stabilize prices in the market and it is only a matter of time before prices will return to normal.
In recent weeks, cooking oil has been in the news in various media, as cooking oil is expensive and scarce. The government has also implemented various innovations to end the shortage, one of which is by revoking HET and distributing subsidized cooking oil.
Head of BIN Gen. Pol (Ret.) Budi Gunawan stated, “The government has revoked the highest retail price of oil to stabilize market prices. Do not let there be a phenomenon (scarcity of oil). This policy is also in line with the increase in export levies for the sale of palm oil and its derivatives.”
In a sense, the chaos that had occurred due to the scarcity of cooking oil was the result of rogue exporters. They do not want to comply with HET and feel that selling oil in Indonesia is not profitable. Finally acted fraudulently by selling it abroad.
However, when the government increases export levies for palm oil and its derivatives, exporters feel at a loss to sell palm oil abroad. As a result, they sell it in Indonesia, so distribution is smooth.
The public is asked not to be surprised that the subsidy was lifted because the aim is to stabilize prices. Indeed, there is a slight increase, but as a result, cooking oil is back in supermarkets and traditional markets. The reason is because those who stockpiled oil decided to sell it. Indeed hoarding carries a prison sentence but it turns out that many do it secretly.
Price stability can occur when there is a smooth distribution of oil and supply continues to grow. So that what is available in the market is not only premium cooking oil with ordinary brands, but also well-known brands. The public will be able to have a variety of choices, especially when some people like one particular brand.
If oil floods the market then the price can decrease because it will follow the laws of economics. Where the number of an item while the demand is slightly reduced, will lower the price.
However, the moment when the price of cooking oil becomes stable, of course it will take time to achieve it because this type of basic food distribution is carried out throughout Indonesia. We just have to wait for the moment so that the price stabilizes so that it doesn’t burden spending money.
While waiting for the price of premium cooking oil to drop, people can temporarily switch to bulk oil. The price of bulk oil is still subsidized, so to get 1 liter it only takes 14,000 rupiah. Bulk oil is also quite good and what differs from premium cooking oil is only the packaging.
People don’t have to worry because cooking oil prices fluctuate because world oil prices are still not stable. The reason is because there is a crisis in Eastern Europe due to the Russian invasion of Ukraine. War has always had an effect not only on society but also on the global economy.
Hopefully the oil crisis will be over soon so that world oil prices will fall again and after a smooth distribution, prices in Indonesia will also be stable. The government is aware that the people really need oil, so they are trying to bring the price down again.
Revocation of the highest retail price of cooking oil does not mean the government is authoritarian. However, oil is being temporarily adjusted in price so that it can be distributed smoothly. We just have to wait for time so that the price stabilizes and people can buy it.
)* The author is a contributor to the Press Circle and Cikini Students
