Minister Of Energy And Mineral Resources Signs Kepmen Regarding The Formula For The Latest Certain Types Of Fuel

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has issued the Decree of the Minister of Energy and Mineral Resources Number 439 K/MG.01/MEM.M/2023 concerning the Basic Price Formula for Certain Types of Oil Fuel.

The Basic Fuel Price Formula is used by the Government to calculate Retail Selling Prices of Certain Types of Fuel, which will later become the basis for the calculation of compensation that will be paid by the State to the Implementing Business Entity for the Assignment of Provision and Distribution of Certain Types of Fuel.

This latest ministerial decree stipulates a basic price formula for certain types of fuel (JBT) of diesel oil and type of kerosene which is a type of fuel provided by the government.

"In the first part of the Ministerial Decree, it is explained that the basic prices for certain types of fuel (JBT), consist of procurement costs, distribution costs, and storage costs, as well as margins," said Director General of Oil and Gas Tutuka Ariadji in Jakarta, Monday, December 18.

Meanwhile, in the second part of this Kepmen, the basic price formula for JBT type of kerosene (kerosene) with a formula of 102.49 percent of the price of the kerosene Market Index (HIP) plus Rp263 per liter.

Then, diesel oil (gasoil) with a formula of 100 percent HIP diesel oil plus Rp868 per liter. This basic price formula is used as a reference to set the basic price for each JBT liter.

Furthermore, with the enactment of this Kepmen, the Minister of Energy and Mineral Resources Decree No. 148 K/12/MEM/2020 was revoked and declared invalid.

Tutuka emphasized that the change in the basic price formula of JBT Oil Solar does not affect the amount of diesel subsidies.

"The change in the base price formula of the Solar Oil JBT does not affect the amount of diesel oil subsidies of Rp. 1,000 per liter. This basic price component of JBT Solar Oil consists of acquisition costs, distribution costs, and storage costs as well as margins. Where the cost of acquisition is the cost of providing fuel from domestic refinery production and/or imports up to the BBM/depot terminal," concluded Tutuka.