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Factors affecting the policy for determining the retail selling price of gas oil in Indonesia

Presidential Regulation No. 191/2014, regulates the subsidy policy for Gas Oil, which is a fixed subsidy. Meanwhile, the retail selling price of Gas Oil will fluctuate in the society according to the formula calculation. However, since April 2016 the price of Gas Oil has been fixed. In certain cases, the determination of the retail selling price may differ from the calculation of the formula considering the state's financial capacity, the purchasing power of the people, and the real economy. This research will examine the influence of the state's financial capacity, the purchasing power of the people, and the real economy, either partially or simultaneously, on the policy of determining the retail sale price, and its impact. The test was carried out through multiple linear regression analysis using IBM Statistics 20. The results showed that the state's financial capacity and the real economy had a significant effect on the retail selling price policy for JBT Solar Oil. Meanwhile, people's purchasing power does not have a significant effect. The determination of the retail selling price of Gas Oil that is not in accordance with the calculation formula may give an impact on society, business entities, and the government.