Fuel prices to re­main un­changed

The Jakarta Post - - BUSINESS -

JAKARTA: En­ergy and Min­eral Re­sources Min­is­ter Ig­na­sius Jo­nan has an­nounced that gov­ern­ment-ad­min­is­tered fuel prices will re­main un­changed for the rest of the year.

Since 2015, the gov­ern­ment eval­u­ates the prices of Premi­um­branded gaso­line of a re­search oc­tane num­ber (RON) of 88, as well as of sub­si­dized diesel (So­lar) and kerosene ev­ery three months in ac­cor­dance with the move­ment of global oil prices.

How­ever, the gov­ern­ment has kept the prices at Rp 6,450 (49 US cents) per liter for Premium, Rp 5,150 for So­lar and Rp 2,500 for kerosene since April 2016 in what it calls an ef­fort to sta­bi­lize the econ­omy.

“Af­ter re­view­ing the coun­try’s fi­nan­cial con­di­tions, the cur­rent eco­nomic sit­u­a­tion, peo­ple’s pur­chas­ing power and so­cio-eco­nomic con­di­tions, the gov­ern­ment has de­cided to main­tain the re­tail prices of cer­tain types of fuel and spe­cially as­signed fuel for the pe­riod of Oct. 1 to Dec. 31, 2017,” En­ergy and Min­eral Re­sources Min­istry spokesman Dadan Kus­di­ana said in a state­ment on Fri­day.

Con­se­quently, state-owned en­ergy gi­ant Per­tam­ina will have to bear the bur­den when re­tail prices are be­low the real eco­nomic value of fuel, which is the case right now fol­low­ing a re­cent hike in global oil prices.

On Sept. 22, the price of Brent crude oil reached this year’s peak of US$59.02 a bar­rel af­ter fall­ing to as low as $44.82 a bar­rel in June. — JP

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