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Minister Erick Thohir Apologizes for Upcoming Fuel Price Increase

30 March 2022 21:08 WIB

TEMPO.CO, JakartaState-owned Enterprises (SOEs) Minister Erick Thohir in Wednesday’s public lecture at the Hasanuddin University announced that the government has made a decision regarding fuel prices in Indonesia. Thohir said Pertamina-sold Pertalite fuel will be subsidized while the price of unleaded fuel Pertamax will be increased, adapting to global oil prices. 

The minister said his apology for the decision taken by the government. The fuel subsidy will be sourced from SOEs dividends. 

“The government has decided Pertalite will be subsidized fuel while Pertamax will not. If the latter gets increased [in price] I apologize, but Pertalite will be subsidized,” said Thohir in the public lecture streamed by the university’s Youtube channel on March 30.

Pertalite as subsidized fuel was announced by the Energy and Mineral Resources Ministry (ESDM), where the 90 octane fuel will replace a previous fuel variety used as subsidized fuel known as Premium. 

The director-general of oil and natural gas Tutuka Ariadji, in a hearing with members of the House Commission VII on March 29, said the subsidy quota for Pertalite amounts to 23.05 million kiloliters.

Director of state energy firm Pertamina, Nicke Widyawati, previously called for legislator’s support to increase the price of non-subsidized fuel Pertamax. 

“Pertamax price has not been adjusted to the market mechanism, support will be needed for this,” said Nicke in a House hearing on March 28. 

Read: President Jokowi Comments on Increasing Domestic Fuel Subsidy

HENDARTYO HANGGI | ANTARA



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