Fuel prices to remain unchanged
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