Still At Home At IDR 9,000 Per Liter In The Last 2 Years, Observer Says Pertamax Price Has The Potential To Increase

Illustration. (Photo: Doc. Antara)

JAKARTA - The price of Pertamax fuel oil sold by Pertamina is now the cheapest in its class considering that the price of non-subsidized fuel has not increased for more than the last two years.

Until early March 2022, the fuel with an octane rating (RON) of 92 was sold for Rp. 9,000 per liter in a number of regions in the country, far below the price of other RON 92 fuel products from Pertamina's competitors, which ranged from Rp. 11,900 to Rp. 12,990 per liter. .

In response to this, the Executive Director of the ReforMiner Institute, Komaidi Notonegoro, said that according to regulations, Pertamina had the opportunity to adjust the price of Pertamax. The increase in the price of Pertamax close to the price of similar products from other companies will not be a problem because the impact on inflation should be controlled.

"The impact of inflation will not continue because it will stop at the end users. Pertamax is not directly related to the process of producing and distributing goods and services," said the lecturer at Trisakti University, Jakarta, quoted from Antara, Tuesday, March 15.

According to Komaidi, the current increase in world oil prices is increasingly burdensome for Pertamina. The current price of Pertamax is still using the reference to the assumption of Indonesian oil prices or the 2022 State Budget ICP which is set at 65 US dollars per barrel. In fact, world oil prices continue to show an upward trend, far above this assumption.

In terms of consumption, Pertamax users also continue to grow. Many motor vehicle owners use Pertamax products because they are of high quality and environmentally friendly compared to BBM with RON below it. Total national consumption of Pertamax in 2021 will reach 12 percent, up from the total consumption in 2020 which was recorded at 8 percent.

"The authority to determine the price of non-subsidized fuel rests with the business entity. However, it also depends on the shareholders," he explained in a written statement.

Komaidi added that the main prerequisite for Pertamina to adjust the price of Pertamax is to communicate with the government. If the government gives its blessing, Pertamina can certainly increase the price of Pertamax.

"There is no need to announce too much like subsidized fuel. Because other actors do the same," he said.

Yayan Satyakti, a researcher at the Center for Economics and Development Studies (CEDS) Universitas Padjadjaran said it would be better if domestic fuel prices should be close to international prices, at least 80-90 percent of international prices. This is to maintain a balance so that the domestic market is maintained and to avoid supply shortages because fuel can be smuggled out of the country.

"Although the price of fuel is more expensive, the supply can be maintained rather than the cheap price, but there are crowds of people lining up," said the lecturer at the Faculty of Economics and Business Unpad.

According to him, the policy to hold the price of Pertamax is not good for the economy. If the price of fuel which is under the authority of a business entity is withheld, the price will cost the economy more.

"The function of the economic value of this price is because to reduce oil and gas imports, it is difficult to reduce oil and gas consumption, except by increasing prices," he said.

Irto P Gintings, Acting Corporate Secretary of PT Pertamina Patra Niaga, said when confirmed that Pertamina was reviewing the potential for adjusting the Pertamax price in line with the recent increase in crude oil prices. He did not elaborate further on the amount of the Pertamax price increase later.

"In terms of adjusting the price of non-subsidized fuel, we always consider the world oil price, the US dollar exchange rate, and of course it must comply with the provisions of the Decree of the Minister of Energy and Mineral Resources," said the Secretary for Subholding Commercial & Trading Pertamina.