Rupiah Weakens, Premium Gas Price to Rise Next Month

TEMPO.CO, Jakarta - Prices of subsidized Premium and Diesel fuel types will probably see an increase starting April 1, as dollar strengthens and world oil prices rise.

“The government is still reviewing it as rupiah weakens and the average oil prices rise,” Acting Director General Oil and Gas of the Ministry of Energy and Mineral Resources, I Gusti Nyoman Wiratmaja Puja, said in Jakarta on Tuesday, March 24.

Aside from external factors, Wiratmaja said, the rise in fuel prices also considers the economic, social and political conditions.

Although there’s a possibility it will rise in April, the rising of fuel prices could also be set before April 2015.  “According to the law, it could be set twice a month,” Wiratmaja said.

PT Pertamina have submit the increased of Premium fuel prices to the government.  “No need to mention how much for it could be a problem,” Marketing Director Pertamina Ahmad Bambang said in a text message on Monday, March 16.

When referring to the market price of diesel in Singapore (MOPS gas oil), then diesel price should also experience in an increase.  However, the government decided not to increase its price with reasons to maintain the economic stability.

Bambang said he will continue to monitor the latest development before increasing the price.

According to the Presidential Decree No.19 Year 2014, Premium fuel will no longer be a subsidized item.  The establishment will be divided into two, which is by the government for Premium fuel outside of Java-Bali and by Pertamina for general Premium fuel inside of Java-Bali. Meanwhile, diesel and kerosene fuel will still be a subsidized item which prices will be set by the government.

FAIZ NASHRILLAH‎ | AYU PRIMASANDI | ANTARA