Will Rupiah Depreciation Raise Fuel Prices? Pertamina Explains
Translator
Editor
26 June 2024 22:23 WIB
TEMPO.CO, Jakarta - Pertamina Patra Niaga, a subsidiary of state-owned oil and gas giant Pertamina, is mulling over the possibility of raising non-subsidized fuel prices in July 2024. This comes after the government decided to keep fuel prices steady until June.
“We couldn't yet announce [whether there’ll be a price hike or not]. We are still reviewing it,” Corporate Secretary of Pertamina Patra Niaga, Irto Ginting, told Tempo in a text message on Wednesday, June 26.
On February 24, Coordinating Minister for Economic Affairs Airlangga Hartarto affirmed that the government would not raise fuel and electricity prices until mid-year.
Pertamina typically adjusts non-subsidized fuel prices monthly based on global oil prices. However, throughout 2024, the company has only increased prices once, in January. Pertamina’s Director Nicke Widyawati attributed this to managing stock, inventory, and cross-subsidies. Additionally, the company took into account the public's ability to afford fuel.
“That is one of the considerations, [we’re] not just looking for profit,” Nicke said during a hearing with the House of Representatives (DPR) Commission VI at the end of March 2024.
At present, non-subsidized fuel prices in Indonesia are Pertamax at Rp12,950 per liter; Pertamax Green 95 at Rp13,900 per liter; Pertamax Turbo at Rp14,400 per liter; Dexlite at Rp14,550 per liter; and Pertamina Dex Rp15,100 per liter.
Energy and Mineral Resources Minister Arifin Tasrif earlier claimed that there had been no inter-ministerial meeting on fuel prices for July 2024 has not been held. “No meetings, no discussions,” he said at the ESDM Ministry Office in Jakarta, last Monday, as reported by Antara.
There has also been no official direction from President Joko Widodo on fuel prices, nor discussions about electricity price continuation, he added.
Fluctuating global oil prices, geopolitical tensions in the Middle East, and a weakening rupiah exchange rate against the US dollar could lead to increased subsidy burdens. Arifin said that subsidized and non-subsidized fuel prices in July would be discussed with SOE Minister Erick Thohir and Finance Minister Sri Mulyani.
RIRI RAHAYU | ANTARA
Editor’s Choice: Rupiah Volatility Indicator Still Below Target, Bank Indonesia Chief Says amid Alarming Depreciation
Click here to get the latest news updates from Tempo on Google News
