ESDM Ministry Talks of Hike in Pertalite, Solar Fuel Prices

TEMPO.CO, Jakarta - Energy and Mineral Resources or ESDM Minister Arifin Tasrif confirmed that the government will take a policy on the price hike of Pertalite and Solar fuel as a medium and long-term strategy in response to the impact of the spike in global oil prices.

“In the medium and long term (strategy), [the government plans to] adjust the price of Pertalite and Solar and accelerate the substitutes (electric vehicles, gas fuel, bioethanol, and BioCNG),” said Arifin in a working meeting with the House of Representatives (DPR) Commission VII in Jakarta, Wednesday, April 13.

At present, he informed that global geopolitical tensions triggered global oil prices to soar. As a result, the average price of Indonesian oil or ICP in March 2022 reached US$98.4 per barrel, far above the assumption in the state budget at US$63 per barrel.

“Aramco's average crude price for LPG has reached US$839.6 per metric ton, while our initial assumption in 2022 was only US$569 per metric ton,” the minister outlined.

Other than increasing the price of 90 RON type gasoline and diesel fuel, the government prepared a short-term strategy: increase the quota for the two types of subsidized fuel in order to meet the people’s needs.

The government planned to increase the Pertalite quota by 5.45 million kiloliters to 28.50 million kiloliters and the diesel quota by 2.28 million kiloliters to 17.39 million kiloliters.

Read: Pertamina Officially Bans Purchase of Pertalite Gasoline Using Jerry Cans

ANTARA