THE EFFECT OF THE INCREASE IN FUEL PRICE IN 2022 ON ABNORMAL RETURN IN THE OIL MINING COMPANY SUB-SECTOR
Keywords:Increase in fuel prices, abnormal returns, event studies, oil mining companies
The fuel subsidy provided by the Central Government is beneficial for the community to get affordable prices. The amount of fuel subsidies from year to year, which in general is increasing, of course, has an impact on the increasingly heavy burden on the state budget. The very significant increase in fuel subsidies in 2022 resulted in the government reducing fuel subsidies which caused an increase in fuel prices on September 3, 2022. One of the impacts of the increase in fuel prices is abnormal returns. This study aims to examine the effect of rising fuel prices in 2022 on abnormal stock returns in the oil mining companies sub-sector. This study uses a quantitative method with the method of analysis of event studies. The research period used was 37 days. The sampling technique used nonprobability sampling technique with purposive sampling method. The number of samples used is 5 companies. The analysis technique used is a different test or paired sample T-test which has been processed using SPSS 27 software. The results show that there is no difference in abnormal stock returns before and after the 2022 fuel price increase in shares of companies in the mining subsector. oil. There is no difference because the sample which represents the population of the mining company sub-sector has no direct relationship with the increase in fuel prices. The results of this study can be used as a reference, consideration, and additional knowledge.