Calculating The Economic Price Of Pertalite Fuel Prices Priced At IDR 10,000 Per Liter

Illustration. (Photo: Doc. Antara)

YOGYAKARTA The government has just lowered the price of non-subsidized fuel oil (BBM) type Pertamax from IDR 13,900 to IDR 12,800 per liter or decreased by IDR 1,100 per liter.

However, this decrease does not apply to Pertalite-type subsidized fuel. So, how much is Pertalite's economic price?

Calculating the economic price of gasoline can be done with the Ministerial Decree (Kepmen) ESDM No. 62.K/12/MEM/2020 concerning the Basic Price Formula in Calculation of Retail Selling Prices for Types of General Fuel Oil Types of Gasoline and Solar Oil which are channeled through Public Fuel Filling Stations (SPBU) and/or Fisherman's Fuel Filling Stations.

Adapting to the Attachment of the Minister of Energy and Mineral Resources Decree No.62 of 2020, the calculation of the price of the Pertalite Economy or type of RON 90 Gasoline is based on the publication price of MOPS or Mogas 92 type meetings with a formula of 99.21 percent times MOPS or Mogas 92.

Meanwhile, the calculation of the price of gas cylinders below RON 95 and the type of diesel oil ON 48 can be done with the following formula:

Mean of 403 (MOPS) or Rp1,8OO/liter + Margin (10 percent of the base price).

Quoted from CNBC Indonesia, if the average price of Mogas 92 is US$70 per barrel with an average exchange rate of IDR 15,570 per dollar. So Pertalite's basic price of gasoline is IDR 9,320 per liter.

This price does not include a value added tax (PPn) of 11 percent and a tax on the use of motorized vehicle fuel (PBBKB) of 5 percent.

If these variables are included, the current economic price of Pertalite is around Rp. 10,400 per liter. This means that the current price of gasoline subsidies is around Rp. 400 per liter.

Factors that affect the Economic Price of Pertalite

According to Finance Minister Sri Mulyani Indrawati, subsidized fuel prices depend heavily on several components that must be calculated. This is because it coincides directly with the State Revenue and Expenditure Budget (APBN).

Calculations of subsidized fuel economic prices such as Pertalit and Solar strongly depend not only on world crude oil prices, but also on macro assumptions that have been stipulated in the current year's APBN Law.

The macro assumptions in question are the price of Indonesian crude oil or Indonesian Crude Price (ICP), the rupiah exchange rate against the United States (US) dollar, and the volume of subsidized fuel use - both Pertalite and Solar.

"We see how economic growth continues to strengthen, of course demand will increase, so the government seeks to see on the one hand to maintain the direction of reform so that it remains targeted," Sri Mulyani said at the Press Conference of our State Budget in Jakarta, according to Antara, Wednesday, December 4, 2023.

The average price of Indonesian crude oil in December 2022 was at the level of 76.66 US dollars per barrel. This figure is down from the November 2022 period of US$87.50 per barrel.

Ani, the Minister of Finance's nickname, added that in 2022, the state budget will work extra as a shock absorber or a damping of turmoil, so that the Indonesian economy will not be affected by global economic uncertainty.

"APBN remains an extraordinary shock absorber for subsidies and compensation which is a protection for our society because oil prices have jumped unusually high," he said.

Therefore, the government cannot simply reduce the economic price of Pertalite and Solar, such as non-Pertamax subsidy fuel that has been lowered by PT Pertamina (Persero).