Oil Price Trend Still Up But Fuel Price Adjustment Hasn't Been Decided, Minister Arifin's Men: We're Still Monitoring

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) noted that until the end of March 2022, world oil prices were still high above 100 US dollars per barrel. Meanwhile, the temporary development of the Indonesian Crude Price (ICP) until March 24, 2022, was recorded at US$114.55 per barrel.

"The ICP in March 2022 is still high. Since the end of 2021, the ICP has indeed crawled up, and has been increasing since the end of February during the Ukraine and Russia conflict. In fact, as of March 1, it was USD 110.14 per barrel. Even the average ICP per month February amounted to 95.7 US dollars per barrel. So the trend is still high," said the Head of the Bureau of Communications, Public Information Services and Agung Pribadi in his statement to the media, Friday, March 25.

The conflict between Ukraine and Russia is still a factor driving price increases. Crude oil supplies from Russia and Kazakhstan were disrupted due to damage to the Caspian Pipeline Consortium pipeline which resulted in reduced supplies to the European Union.

Agung continued, the high world oil prices greatly affected the price of fuel. For information, the upper limit for the selling price of general fuel type RON 92 for March 2022 is Rp. 14,526 per liter.

This price is a reflection of the economic price of RON 92 fuel based on the basic price formula in calculating the retail selling price of general fuel types.

As for calculating the economic price or the March upper limit, consider the realization of price developments in the previous month, namely February. Even though in February 2022, oil prices were not as high as March 2022.

"Taking into account the oil price in March which is much higher than February, the economic price or the upper limit for general fuel RON 92 in April 2022 will be even higher than Rp. 14,526 per liter, it could be around Rp. 16,000 per liter," said Agung. .

Agung emphasized that, as stated by the Minister of Energy and Mineral Resources, his party is still monitoring the price of oil. "Because if it's prolonged, the burden will be heavy, both for the state budget, Pertamina and other sectors," Agung explained.