Oil Price

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PROs AND CONs OF INCREASING OIL PRICE

1. INTRODUCTION
In this decade, the price of oil has been raised 3 times. The era of President SBY has the record of increasing oil price (premium). The policy was made by SBY has become pro and con between the expert of economic. Some people said that increasing the oil price is just can’t be done because it’s contra with UU, but government said that if we don’t raise the oil price it will absorb the APBN because the import oil price is higher and higher time by time.
Increasing the oil price will have domino effect for government, if government increases the oil price while the income of people is fixed so the purchasing power will decrease. But if the government doesn’t increase the oil price it will harm national budget.
The issues of and concerns about the energy sector are multi-faceted, often international, spatially differentiated and dynamic due to the pivotal role of energy in any individual’s day-to-day life as well its importance as a key input to the production processes that transform inputs to goods and services, and because of the sector’s multi-dimensional strategic importance (in terms of macro-economic influences, geo-political implications, and environmental concerns). Yet, at any given time a common set of issues having a common appeal across the board often tends to emerge. Concerns related to the security of supply are dominating recent discussions now (Bielecki, 2002; Toman, 2002). Access to energy for billions who are struggling to get access to affordable, reliable, and acceptable energy services is a major challenge for achieving sustainable development worldwide (IEA, 2002; DfID, 2002). At the same time, fingerprints of unsustainable practices abound: unprecedented demand growth with demand arising from new centres of growth in contrast to traditional centres; globalization of wasteful consumption patterns; supply concentration in politically unstable regions; financially bankrupt state

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