No Price Hike of Fuel Used by Majority of People
Date 5 Juli 2018
Ministry of Energy and Mineral Resources reported selling prices of oil which used by the majority of the people, such as Premium, Solar, Kerosene and Pertalite, are not raised, just like the price of Pertamax fuel.
Director of Downstream Regulatory Agency for Oil and Gas at Ministry of Energy and Mineral Resources Yulia Rahmawati explained that based on Presidential Regulation Number 43 of 2018 on the Amendment of Presidential Regulation Number 191 of 2014, the price of designated fuel oil distributed in designated areas is stipulated by the Government, not subsidized, and allocated with additional cost for the distribution.
For example, Premium is distributed all around Indonesia which is based on Regulation of the Minister of Energy and Mineral Resources Number 1851 of 2018, Yulia said during a Thematic Forum of the Governmental Public Relations Coordination Board (Bakohumas) adopting a theme Policy for National Supply and Sales Price of Retail Fuel Oil and Liquified Petroleum Gas (LPG), in Bogor, West Java, Thursday (5/7).
As for the sales price of non-subsidized fuel, Yulia added, is stipulated by business entities and is obliged to report it to the Minister, as implemented by fuel distributors Vivo, Shell, and Total.
Yulia also compared fuel prices in gas filling stations (SPBU) in Jakarta, Bogor, Depok, Tangerang, and Bekasi in which the price of Pertalite (RON 90) Pertamina is Rp7,800, Shell Regular Rp9,300, and Total Performance Rp9,200, Pertamax (RON 92) Pertamina Rp9,500, Super (92) Shell Rp9,950, and Total Performance (92) Rp10,200.
As for price of Pertamax Turbo (RON 98) Pertamina Rp10,700, V Power (95) Shell Rp11,250, and Performance (95) Rp11,350, Dex Rp10,500, Diesel Shell Rp11,150, Performance (90) Diesel Total Rp11,300, and Dexlite Pertamina Rp9,000, Yulia said, adding that the price will valid as of 1 July 2018 for Pertamina and Total, and 3 July 2018 for Shell.
In the meantime, Head of Sub Directorate of Fuel Price and Subsidy at Ministry of Energy and Mineral Resources M. Riswi asserted that the price of certain types of fuels is stipulated by the Government and is subsidized and the amount of the subsidy is set to the price development. He also mentioned that the fact of Pertalite substituting premium is the consideration why the Government, through state-owned oil and gas company Pertamina did not raise the price of Pertalite fuel.
Pertamina has the privilege to manage its own business areas so it will increase the earnings, Riswi said.
On the same occasion, Vice President Corporate Communication of Pertamina Adiatma Sardjito said that more than 93% of factors in stipulating crude oil price are not within the control of the Government. Fuel distribution particularly in outermost areas is extremely hard; for example, the distribution in Karimun Jawa or Enggano takes more time because it must be transported by seas with high waves, Adiatama added.
Also attending the meeting were Assistant to the Deputy Cabinet Secretary for Public Relations and Protocol Alfurkon Setiawan, and Director of Downstream Regulatory Agency for Oil and Gas at the Ministry of Energy and Mineral Resources Yulia Rahmawati, representatives of Communication Board in ministries/institutions and Indonesian National Defense Forces/Indonesian National Police. (AS/EN/ES) (RAS/EP/Naster)