Wednesday, 23 October 2019

ESDM Ministry Issue Regulation on Fuel Prices Calculation

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Editor:

Mahinda Arkiyasa

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  • Pertamina gas station in Matraman, Jakarta, October 2018. Tempo/Tony Hartawan

    Pertamina gas station in Matraman, Jakarta, October 2018. Tempo/Tony Hartawan

    TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry (ESDM Ministry) has enacted Regulation No. 19 K/10/MEM/2019, which regulates retail price for non-subsidized fuel, such as the Pertalite, Pertamax CS, Solardex, and Dexlite.

    "The [calculation] formula is included in the Regulation to determine the price for [non-subsidized] fuel. That way, business will feel more comfortable, and the consumers are protected. There is a sense of fairness," said Chief of Communication Bureau of the Public Information and Cooperation of the ESDM Ministry Agung Pribadi as quoted by Antara in Surabaya on Saturday, February 9, 2019.

    The regulation also regulates fuel sold in other gas stations including Shell, Total, AKR, Exxonmobil, and Vivo, among others.

    The policy was made in an attempt to maintain the stability and certainty of fuel prices, to protect consumers, and to promote fair business competition.

    The Regulations limits the profit margin that can be gained by fuel distributors at 10 percent maximum, and 5 percent minimum. In addition to the margin, the Regulation also stipulates the formula to calculate the basic price of fuel as a reference for businesses in determining fuel retail price. It is expected that the Regulation can prevent businesses from determining over expensive price.

    ANTARA