EWI Executive Director Ferdinand Hutahaean: Pertalite Price Must Increase So Pertamina Doesn't Lose!

Illustration. (Photo: Doc. Antara)

JAKARTA - Executive Director of Energy Watch Indonesia (EWI) Ferdinand Hutahaean assessed that the price of Pertalite should be increased because if Pertamina continues to sell it at the current price, it will have a bad impact on the finances of the BUMN, and even have the potential to suffer huge losses.

"The price of Pertalite must be increased. Moreover, the selling price of Pertamina's fuel is still below the price of foreign-owned fuel. Otherwise, it will have a bad impact because it will hit Pertamina's finances," he said in his statement, quoted from Antara, Thursday, October 28.

From every liter of Pertalite sold, he said, Pertamina bears continuous losses. According to Ferdinand, if the state-owned oil and gas company loses money, it has the potential to reduce Pertamina's contribution to the state treasury as well as the community.

He revealed that last year Pertamina contributed nearly Rp200 trillion to state finances, besides that during the pandemic, the company's contribution was also very large, including building a special COVID hospital and distributing medical oxygen.

Ferdinand stated that Pertamina must bear the burden of selling Pertalite at this time, because production costs are very high but selling at a price below the economy with a very large difference, around Rp. 3,000 per liter.

This happens because the current price is still calculated using an ICP of around 45 US dollars. Meanwhile, on the other hand, world oil prices continued to rise, even being the highest, by twice exceeding the ICP price.

If fuel prices continue to be maintained below the economic price, he continued, then at a certain point Pertamina will certainly suffer losses.

"Their finances will be eroded to cover losses incurred due to fuel sales that are not in accordance with the economic price," said Ferdinand.

If it has suffered losses, Pertamina will find it difficult to cover operational costs which will eventually become a burden for the government.

"So I think it should be considered to increase the price of fuel, whether according to the economic price or at least close to it. But the moment must also be right," he said.

According to Ferdinand, apart from Pertalite, all types of fuel, such as Solar, Pertamax, and Pertamax Turbo, which are marketed by Pertamina are actually still below their proper price. On the other hand, world oil prices continue to rise.

Previously, the Director of Downstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources, Soerjaningsih, stated that Pertamina had to bear a loss of IDR 3,350 thousand per liter on the sale of Pertalite.

This, he added, was because the economic price of Pertalite (RON 90) was actually already above Rp. 11 thousand per liter, while Pertamina was still selling well below that price, which was Rp. 7,650 per liter.