Prices For Fuel and Food Price
October 2nd, 2011 | 
Author: Prices for fuel and food price
Fuel (fuel oil) is one natural resource that can not currently be updated. Research is increasingly opening opportunities biofuell fuels such as biodiesel are now starting to be sold at public refueling stations (gas stations).
Decline in fuel prices is one thing that is beneficial to the state finance in general and specifically the family finances. However, because the decline in fuel prices is no direct effect to decrease the cost of transportation (Organda), people began to complain of high cost of basic materials that are not followed by a decrease in fuel. Here is an excerpt detikFinance on the matter:
Decline in fuel prices could make food prices go down about 2% only. This proof is still not a significant drop in fuel prices on basic necessities. This was conveyed by Minister of Trade Mari Elka Pangestu said during a meeting with the House of Representatives Commission VI, Jakarta, Wednesday (28/01/2009).
“With the decline in fuel prices that have been accomplished estimated the direct impact of about 1% to 2% of basic goods and processed foods,” he said. Let’s explain the fuel cost component in the cost structure of agricultural products only 7% -10%, while for the industry could reach 8% to 15%. “For example, fuel reduction of 15%, would potentially reduce prices only 0.7% to 1%,” he added.
The low impact of fuel reduction is explained Mari, because the cost of transportation and distribution triggered only an estimated 10% of retail price and retail. While on the other side of the weakening rupiah against the U.S. dollar and the distribution is still disrupted due to the impact of flooding in areas of distribution channels helped trigger the weak impact of falling fuel prices. “With the program will hopefully help MINYAKITA fuel so that the impact will be felt,” he explained.
But he estimates that if, a decline of 2% was accompanied by a reduction in electricity tariffs and second round effects of fuel reduction has occurred it will affect up to 3% to 10% on the price of staple foods such as meat, flour, eggs and others. Given all this energy component in the industrial sector, especially electricity is still quite high.
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Tags: business, Energy, Fuel oil, Gasoline, Jakarta, Price, Price of petroleum, Technology