Observer: Pertamax Price Increase Will Not Affect People's Purchasing Power

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JAKARTA - Pertamina has again raised the price of non-subsidized fuel oil (BBM) following the soaring increase in world crude oil prices. Energy Watch Executive Director Mamit Setiawan said that the price increase will not affect the purchasing power of the people who are mainly the upper middle class.

"I don't think (the price increase) will have an impact. The users are people who can afford it and from a financial perspective, I think they can," said Mamit when he was a speaker at the Market Review webinar on IDX Channel, Monday, March 7.

He added that the amount of Pertamax fuel consumption is still very small, so it has no effect. It is different when compared to increasing the price of Pertalite which has a consumption level of up to 47 percent.

"Nationally, consumption is still 5 percent, so it looks like there will be no migration to the use of subsidized fuel," said Mamit.

In addition, according to him, the public is also considered to have understood the benefits of using fuel with a higher RON for their vehicles so that he is sure they will not switch to a lower RON.

"Luxury motorbikes and luxury cars will have to use low RON fuel and eventually expensive engine maintenance," he added. The following is the latest list of Pertamina fuel prices at all Indonesian gas stations which will take effect from Thursday, March 3, 2022:

Premium (RON 88): IDR 6450 per liter

Pertalite (RON 90): IDR 7,650 - IDR 8,000 per liter

Pertamax (RON 92): IDR 9,000 - IDR 9,400 per liter

Pertamax Turbo (RON 98): IDR 14,500 - IDR 15,100 per liter

Diesel/Biodiesel (subsidy): IDR 5,150 per liter

Dexlite: IDR 12,950 - IDR 13,550 per liter

Pertamina Dex: IDR 13,700 - IDR 14,300 per liter.