World Oil Prices Continue To Skyrocket, Pertamina: Globally, Indonesia's Cheapest BBM And LPG

Illustration. (Photo: Doc. Antara)

JAKARTA - Pertamina's VP of Corporate Communication Fajriyah Usman claimed, amid soaring world crude oil prices as a result of the Russia-Ukraine conflict, the Government and Pertamina continue to maintain people's purchasing power so that the economy continues to grow.

The government has decided to continue to help the community by establishing Pertalite as a Special Assignment Fuel Type (JBKP), so that the price remains affordable at around Rp. 7,650 per liter. Likewise, the price of biodiesel is subsidized by the government so that it remains Rp5,150 per liter.

"Globally, fuel and LPG prices in Indonesia are among the cheapest in the world because they are subsidized by the government," he said in a statement to the media, Monday, April 11.

Apart from 3 kg LPG, continued Fajriyah, the price of Biosolar and Pertalite was also maintained stable, there was no increase. This is to support efforts to stabilize the national economy and avoid an increase in logistics prices, both in the transportation of goods and people, considering that these 2 types of products are the most consumed fuel by the public, which is 83 percent of the total sales of all Pertamina retail fuels.

"Both Biosolar and Pertalite are types of fuel that receive support from the government in the form of subsidies or compensation, so that the price is fixed," explained Fajriyah.

As we know, for every 1 liter of Biosolar that people buy, the government provides a subsidy of Rp. 7,800. The value of this subsidy is 150 percent or 1.5 times higher than the price sold to the public of Rp5,150.

Meanwhile, for every 1 liter of Pertalite purchased by the public, the government provides a subsidy of IDR 4,000-4,500 per liter. The value of this subsidy is also more than 50 percent or half of the selling price to the public which is Rp. 7,650.

"If we compare the average fuel price in Asia, the price in Indonesia is still the lowest," he added.

Based on data held by Pertamina, he detailed the highest average fuel price in Singapore at Rp. 30,208 per liter, followed by Laos at Rp. 24,767 per liter, the Philippines at Rp. 20,828 per liter, Cambodia at Rp. 20,521 per liter, Thailand at Rp. 19,767 per liter. , Vietnam IDR 18,647 per liter, and Indonesia on average IDR 16,500 per liter.

"Below Indonesia, Malaysia has relatively lower fuel prices due to differences in the value of subsidies," continued Fajriyah.

Meanwhile, if you look at the price of fuel in developed countries, it is already much higher. The highest prices were Hong Kong Rp36,176 per liter, Finland Rp34,741 per liter, Germany Rp34,454 per liter, Italy Rp34,510 per liter, Norway Rp33,162 per liter, Netherlands Rp33,018 per liter, Greece Rp32,733 per liter and Portugal IDR 31,728 per liter. The price is based on an exchange rate of Rp. 14,357 per US dollar.

"Referring to the data and facts above, it is natural that many parties say that Pertamina's fuel price is still the lowest in the world. And not only fuel, it's the same for LPG," said Fajriyah.

He detailed that for every 3 kg LPG cylinder purchased by the public, the Government provides a subsidy of Rp. 33,750. The value of this subsidy is also higher than the selling price of the LPG to the public.

For information, as of February 2022, the selling price of LPG in Singapore is around Rp. 32,000/kg, the Philippines is around Rp. 27,000/Kg and Vietnam is around Rp. 24,000/Kg. For Thailand, the LPG price is Rp. 10,000/Kg and Malaysia Rp. 6,500/Kg, because the price of LPG in these two countries is currently subsidized by the Government.