Fuel Prices Never Decrease, People Estimate Loss Of IDR 13.75 Trillion

Illustration of a Gas Station (Irvan Meidianto / VOI)

JAKARTA - The Coalition of Petroleum Price Plaintiffs (KMPHB) has sent a summons to President Joko Widodo through the Ministry of State Secretariat (Kemensetneg) regarding the price of fuel oil (BBM) which has not decreased. In fact, world crude oil prices fell.

As is known, the world crude oil price since March has fallen quite a lot, and the price in April is the lowest for the last 20 years. The condition was exacerbated by the over supply of oil refineries around the world which made the price of fuel products 2 US dollars (US) cheaper per barrel compared to the price of crude oil.

KMPHB Coordinator Marwan Batubara said, in many countries it also fell, but the downward trend in global fuel prices did not occur in Indonesia. From April to June, all types of fuel sold by Pertamina, Shell, Total AKR and Vivo were never lowered.

"In principle, the summons we have submitted to the State Secretariat will be delivered by the plaintiffs," he said, in a written statement received by VOI, in Jakarta, Thursday, June 11.

Marwan said, based on the price formula set by the government, especially for general types of fuel, the price of fuel always changes according to fluctuations in world oil prices and the rupiah exchange rate against the dollar.

Furthermore, he said, according to the Minister of Energy and Mineral Resources Decree No.62K / 2020, the price formula for gasoline types under RON 95, RON 98 Petrol, and CN 51 Diesel Oil, is MOPS or Argus plus Rp.1,800 per liter plus a 10 percent margin of the base price. .

In accordance with the formula above, based on the average MOPS value of February 25 to March 24 2020 and the exchange rate of US $ 15,300, the April 2020 fuel price for the Pertamax RON 92 type is around Rp. 5500 and Pertalite RON 90 around Rp. 5250 per liter.

"In fact, the official price of fuel sold at various gas stations is Rp. 9,000 (Pertamax) and Rp. 7650 (Pertalite) per liter. Thus, if compared to the price according to the formula, Pertamax fuel consumers pay more than Rp. 3000 per liter," he explained.

According to Marwar, the same thing happened to certain fuels (diesel) and special assignment fuels (premium), with an expensive value of around Rp. 1,250-1500 per liter. For all types of fuel, the average overpriced value is estimated at IDR 2,000 per liter.

Meanwhile, he said, in May and June, the government would maintain fuel prices without any reduction. As a result, consumers buy fuel again at a higher price than the price according to the formula for the Minister of Energy and Mineral Resources.

Marwan said, based on his two-month record, Indonesians had overpaid for fuel of around Rp.13.75 trillion in April and May. This departs from the calculation of an average consumption of 100 kilo liters per day in all gas stations.

With the assumption of 100 kilo liters per day, said Marwar, there would be an overpayment of Rp6 trillion in May. Since the previous two months, two months earlier, an average overpayment of Rp7.75 trillion was taken.

"The community has borne the burden of economic costs that are not reasonable in the midst of the COVID-19 pandemic," he said.

Illustration of health protocol at Gas Station (doc. Pertamina)

Rules Violation

Marwar said Pertamina President Director Nicke Widyawati and Minister of Energy and Mineral Resources Arifin Tasrif at the Hearing Meeting with Commission VII DPR have explained various reasons why the price of fuel has not been lowered. These reasons may be partly relevant or understandable to the people. However, these reasons must still refer to the applicable legal provisions.

In fact, said Marwan, the government has actually issued various regulations related to the selling price of fuel, namely two Presidential Regulations, as well as dozens of ESDM and ESDM Ministerial Decrees, which were issued from 2104 to 2020.

The Perpres referred to include Presidential Decree No. 191/2014 and Presidential Decree No. 43/2018. While the decrees of the Presidential Decree are Presidential Decree No. 39/2014, Presidential Decree No. 4/2015, Presidential Decree No. 39/2015, Presidential Decree No. 27/2016, Presidential Decree No. 21/2018, Presidential Decree No. 34/2018 and Presidential Decree No. 40/2018.

So far, said Marwan, since President Jokowi's administration in 2014, fuel prices have routinely changed according to regulations and price formulas set by the government. If the fuel price formula for April, May and June 2020 is not applied, even though the Minister of Energy and Mineral Resources and the President Director of Pertamina have various reasons, then this is still a violation of applicable regulations.

"The violation is an abuse of power that has harmed the people, and must be accounted for," he said.

Lowering Fuel Prices

Marwar emphasized that in connection with these losses and in order to ease the burden on the hundreds of millions of people who are suffering from the covid-19 wreckers, his party demands that the government compensate for the loss of Rp. 13.75 trillion in excess to pay to the community through legal, fair and transparent mechanisms.

"We also asked for a reduction in fuel prices starting in July and promised to carry out the determination of fuel prices in accordance with the prevailing laws and regulations," he said.

According to Marwar, if by the deadline of June 16, his party's demands were not fulfilled or received no response from the government, then the next step that would be taken was to file a legal suit (Citizen Law Suit) to the Court.

"We took this step because the President had committed an act against the law by the authorities (Onrechtmatige Overheidsdaad), so that it had hurt the people to get the price of fuel in accordance with the prevailing regulations and price formulas," he said.