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Premium to Follow Global Oil Price

5 January 2015 11:12 WIB

Warga mengantre untuk mengisi BBM di salah satu SPBU di Jalur Pantura, Indramayu, Jawa Barat, 22 Agustus 2014. Sejumlah SPBU di jalur pantura mulai kehabisan stok BBM jenis Premium sehingga mengakibatkan antrian kendaraan. ANTARA/Dedhez Anggara

TEMPO.CO, Jakarta - Sudirman Said, Minister of Energy and Mineral Resources, said that the selling price of Premium gasoline (RON 88) will follow the price of crude oil and the US dollar exchange rate. "Premium will be sold for an economical price, the same as Pertamax; it will fluctuate," he told Tempo last weekend.

By using the pricing formula, the government will no longer provide subsidies for Premium. Through the policy, the public will be familiar with the market price.

However, the government still will determine the reference price for Premium. "We will not just leave it to the market mechanism," said Sudirman.

The base price will be set by the government every month, calculated using the average market price index and the exchange rate according to Bank Indonesia's purchase rate.

The government will continue subsidizing kerosene and Solar diesel. Kerosene price will be pegged at Rp2,500 per liter while Solar diesel will have a fixed subsidy of Rp1,000 per liter. 

AYU PRIMA SANDI | ODELIA SINAGA

Subsidized fuel


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