The Ministry Of Energy And Mineral Resources Admits That It Does Not Intervene With Pertamina, Which Does Not Increase Fuel Prices

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) responded to the decision of PT Pertamina (Persero) which again did not increase the price of non-subsidized fuel oil (BBM) in March 2024.

"From us, it is clear that the rules are there to report here. As long as he is still in the corridor and that area is in the fuel business entity. We don't have any intervention," said Secretary General (Secretary General) of the Ministry of Energy and Mineral Resources Dadan Kusdiana at the Ministry of Energy and Mineral Resources Building, Jakarta, quoted from Antara, Friday, March 1.

Dadan said that the decision regarding the price of non-subsidized fuel is a policy of each business entity.

"There are clear rules for the game, to go up and down all kinds of things in the region business entities to adjust," he said.

To note, the price of non-subsidized fuel in March 2024 has not changed or is still the same as the price in February 2024.

"For the time being, the price of non-subsidized fuel on March 1, 2024, has not changed, so it is still the same as the previous price or price in February (2024)," said PT Pertamina Patra Niaga Corporate Secretary Irto Ginting in his statement on Friday.

However, Irto said Pertamina Patra Niaga will continue to review the price of non-subsidized fuel by looking at the trend in crude prices, the publication price of Mean of Platts Singapore (MOPS), and also the exchange rate.

"If there is no adjustment to the price of non-subsidized fuel, while MOPS and exchange rates increase, of course, they will correct the company's potential revenue," said Irto.

Previously, the Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that there would be no increase in the basic electricity and fuel tariffs until June 2024.

"Earlier it was decided that in the plenary cabinet session there would be no increase in electricity, no increase in fuel until June (2024), whether it's subsidies," said Coordinating Minister Airlangga in Jakarta, Monday (26/2).

This, said Airlangga, is one of the factors causing the widening target of the 2024 APBN fiscal deficit which is recorded at 2.29 percent of GDP. This is because subsidies to withstand rising electricity prices and fuel require a larger budget for PT Pertamina and PT PLN.

"It will require an additional budget for Pertamina and PLN, and that will later be taken from both the remaining excess budget balance (SAL), as well as the widening of the budget deficit in 2024. So that's 2.3-2.8 (percent). Next year is also in the same framework 2.4-2.8 to be realistic," he said.

Meanwhile, Pertamina's fuel price as of March 1, 2024 for the Java region, namely Pertalite Rp. 10,000 per liter, Pertamax Rp. 12,950 per liter, Pertamax Turbo Rp. 14,400 per liter, Dexlite Rp. 14,550 per liter, Pertamina Dex Rp. 15,100 per liter, and Pertamax Green Rp. 13,900 per liter.