The Minister Of Energy And Mineral Resources Ensures That Non-Subsidized Fuel Prices Will Not Increase For The Next Three Months

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that the price of non-subsidized fuel oil (BBM) will not increase until June 2024.

"About June. We'll see because it's still 83 US dollars (per barrel), yes," said Arifin Tasrif as quoted by ANTARA, Friday, March 8.

However, said Arifin, his party is still calculating the impact on Pertamina, especially regarding the revenue from Pertamina Patra Niaga.

"There will be a calculation later," said Arifin.

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 it is 2.3-2.8 (percent). Next year it will be in the same framework 2.4-2.8 to be realistic," said Airlangga.

Meanwhile, Corporate Secretary of PT Pertamina Patra Niaga Irto Ginting said Pertamina Patra Niaga continues to review the price of non-subsidized fuel by looking at the trend in crude oil prices, the publication price of Mean of Platts Singapore (MOPS), and also exchange rates.

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

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.