Good News, The Government Will Not Increase Pertalite Prices To Protect People From The Impact Of Rising Oil Prices

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian government has stated that it will not increase the price of subsidized fuel oil (BBM) in order to protect the public from the impact of rising world crude oil prices, which are currently still above 110 US dollars per barrel.

The Head of the Bureau of Communication, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources, Agung Pribadi, said that the high price of crude oil had an impact on fuel prices and the government kept the price of Pertalite fuel at IDR 7.650 per liter, because the people consumed the most.

"To protect the public, subsidized fuels such as diesel, kerosene, and fuel which are consumed the most by the public, such as Pertalite, have a fixed price," he said in a written statement, quoted from Antara, Monday, March 21.

The Ministry of Energy and Mineral Resources has set the Indonesian Crude Price (ICP) for February 2022 at 95.72 US dollars per barrel. Meanwhile, the provisional ICP figure for March 2022 until the 17th is USD 114.77 per barrel.

"While the ICP is still high above 114 US dollars per barrel, the price of Brent oil is even higher. The high price of oil will not only have an impact on the state budget, but also the price of fuel supply," explained Agung.

In March 2022, the upper limit for the selling price of the general type of fuel, RON 92, is IDR 14.526 per liter. The price is a reflection of the economic price of fuel based on the basic price formula in calculating the retail selling price of general types of fuel.

The selling price of RON 92 fuel at gas stations now varies depending on business entities. The Ministry of Energy and Mineral Resources noted that various gas stations sell RON 92 fuel ranging from IDR 11.000 to 14.400 per liter, except Pertamina is currently still selling RON92 or Pertamax which is quite low at IDR 9.000 per liter.

"For the price of general types of fuel, it is indeed determined that important business entities should not exceed the stipulated upper limit of IDR 14.526 per liter for March 2022," said Agung.

Based on Global Petrol Prices data quoted by the Ministry of Energy and Mineral Resources on March 14, 2022, the price range for non-subsidized fuel in several Southeast Asian countries, including Singapore is IDR 30.800 per liter, Thailand is IDR 20.300 per liter, Laos is IDR 23.300 per liter, the Philippines is IDR 18. 900 per liter, Vietnam IDR 19.000 per liter, Cambodia IDR 16.600 per liter, and Myanmar IDR 16.600 per liter.