Indonesian public opinion is buzzing with information that Pertamax gasoline price may increase due to the increasing signal of Pertamax fuel oil price (BBM) getting stronger and stronger.
According to the update at 8:10 am on March 28 (Hanoi time), the price of Pertamax gasoline (equivalent to the 92 petrol product line in Vietnam) being listed by PERTAMINA Group in the Indonesian market ranges from (9,000 – 9,400 IDR) , about 14,345 – 14,982 VND).
Data on Kata Data also shows that Pertamax only sells IDR 9,000, the lowest gasoline price in the market. Meanwhile, rival V-Power 92 (from Shell) is being sold a liter for IDR 12,990 (VND 20,678, higher than the price of Vietnamese gasoline).
According to Kompas (Indonesia) on Sunday, the new movement of gasoline prices is consistent with the increasing economic prices of fuels in general, RON 92 or the equivalent of Pertamax in particular, based on calculations by Ministry of Energy and Mineral Resources.
Specifically, according to this sheet, the upper limit or economic price for RON 92 gasoline is estimated at IDR 16,000/liter in April 2022. This is up from the economic price in March 2021 of IDR 14,526. However, the economic price is the same, but Pertamina is still selling Pertamax for about 9,400 IDR/liter. This means that there is a huge difference between the selling price and the economic price at Pertamax.
Agung Pribadi, director of the Department of Communication, Public Information Services and Cooperation of the Ministry of Energy and Mineral Resources, said that the high world oil price, currently above 100 USD/barrel, greatly affects the price of fuel. Whether.
The selling price of common RON 92 gasoline in March 2022 is IDR 14,526/liter based on the actual price movement of petrol in the previous month, of which the oil price in February 2022 is not as high as in March 2022.
“Therefore, the economic price of RON 92 gasoline April 2022 will be even higher by IDR 14,526/litre, possibly around IDR 16,000/litre,” the leader said in a statement on Sunday. If sold for IDR 16,000 / liter, the price of Pertamax gasoline will fall to about VND 25,475, still cheaper than gasoline 92 in Vietnam about VND 3,000 / liter.
Previously, the Indonesian Government also signaled an increase in the price of Pertamax. Accordingly, Finance Minister Sri Mulyani Indrawatit commented that Pertamax has been prioritized for consumption by the elite.
He said during CNBC’s 2022 Indonesia Economic Outlook, on Tuesday, “Pertamax may be affected by a rise in world oil prices as it includes non-standardized fuel and it is consumed by the upper class”.
Pressure to increase gas prices because of budget impact
Meanwhile, the special Tham vana of the Minister of State Enterprises, Arya Sinulingga, suggested that the selling price of Pertamax should be adjusted. According to him, if Pertamax is still sold for about IDR 9,000/liter, it means that Pertamina is subsidizing luxury cars.
According to him, Pertamax consumption accounts for about 13% of total national fuel consumption, most of the users are wealthy people or owners of luxury cars.
Meanwhile, Energy Economics Observer at Gadjah Mada University (UGM) Fahmy Radhi assessed that Pertamax’s selling price should be based on economic prices, if Pertamax is not increased, Pertamina’s burden will be heavier. According to this position, the increase in Pertamax price will have a significant impact on inflation. “Increasing Pertamax has the potential to increase inflation,” Fahmy said.
The country’s Tribun newspaper also reported the possibility of Pertamax’s price increase, in line with world oil prices soaring above US$100 a barrel.
Acting Secretary of PT Pertamina Patra Niaga, Irto Ginting, did not specify or confirm the price increase of Pertamax in the near future as coordination work is still underway. “We are still working with stakeholders to adjust the price of Pertamax,” Irto said.
“As the Minister of Energy said, at the moment we are still monitoring oil prices, because if prolonged, the burden is really heavy, both for the state budget, Pertamina and [related] sectors. – PV]”, an Indonesian energy industry leader explained.