The US-proposed limits on the price of Russian oil could further exacerbate the global energy crisis, as it would not help solve the supply issues the world is facing, Indonesian Finance Minister Sri Mulyani Indrawati told CNBC on Friday.
According to the official, energy prices are high because demand is outstripping supply, which has already been disrupted due to Russia’s military operation in Ukraine and subsequent Western sanctions which target the country’s energy sector.
“Putting a cap is definitely not going to solve the problem, because it is about the quantity which is not adequate, comparing to the demand which is in place,” Indrawati said, speaking to the press on the sidelines of the G20 meeting of finance ministers and central bank governors in Bali, Indonesia.
The official added that the supply-demand gap is only going to widen in the coming months as the heating season approaches.
