Pertamax Prices Down, Bahlil: If World Oil Rises, It Can Be Corrected Again

Minister of Energy and Mineral Resources Bahlil Lahadalia ensures that subsidized fuel prices will not rise. (Teddy VOI)

JAKARTA - Energy and Mineral Resources Minister Bahlil Lahadalia has ensured that subsidized fuel prices will not rise even though non-subsidized fuel prices move in line with the world market.

Bahlil conveyed this after meeting President Prabowo Subianto at the Presidential Complex, Jakarta, Monday, August 3.

He said that he came to the Palace to report and consult with the President regarding routine work at the Ministry of Energy and Mineral Resources.

"Reporting to the President to consult on routine work at the Ministry of Energy and Mineral Resources," said Bahlil.

According to Bahlil, the discussion with the President concerns the energy sector, including electricity.

When asked about the decline in Pertamax prices, Bahlil said that the price of non-subsidized fuel did indeed follow the world market price and ICP.

ICP or Indonesian Crude Price is the average price of Indonesian crude oil which is one of the references in determining energy prices.

"From the beginning I said that regarding non-subsidized fuel, the price will indeed follow the world market price, ICP," said Bahlil.

Therefore, said Bahlil, the price of non-subsidized fuel can fall when world oil prices weaken. On the other hand, prices can also rise if the world market moves up.

"So if the world price goes down, it will correct itself. But if it goes up, it will definitely go up," said Bahlil.

Bahlil said that the current condition is going down. Therefore, private business entities are adjusting prices.

"Now it's down again, and then private businesses are correcting the decline in prices," he said.

When asked about the direction of fuel prices in the future amid global geopolitical conditions, Bahlil did not give a figure. He said the movement depends on the world situation.

"Yes, it depends on the geopolitical conditions of the world," said Bahlil.

However, Bahlil emphasized that the most important point was that subsidized fuel would not increase.

"The important thing is that subsidized fuel will not rise. That's the most important thing," he said.

Bahlil said that the majority of fuel consumption in Indonesia still comes from subsidized fuel. According to Bahlil, the proportion of subsidized fuel use reaches 80 percent, while non-subsidized fuel is around 20 percent.

"Total fuel consumption of 80 percent is subsidized, which is 20 percent non-subsidized," said Bahlil.

He said that non-subsidized fuel was used by the able-bodied community. Meanwhile, subsidized fuel remains a part of the government's burden.

"If the 80 percent is still part of the government's burden, namely subsidies," he said.