Pertamina Suggests Rp500/liter Price Hike

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  • TEMPO.CO, Jakarta – State oil and gas company PT Pertamina (Persero) suggested the government to raise the price of fuel by Rp500 per liter for subsidized gasoline (Premium) and diesel (Solar). The policy, Pertamina said, must be made quickly before the new administration takes the government seat.

    "By raising prices that much, the people will be safe and the government will not have to carry subsidies burden," Pertamina senior vice president for fuel marketing and distribution, Suhartoko, said in Jakarta yesterday.

    The raise, he said, must be implemented by September 1. To wait any longer would only increase the additional budget for fuel subsidy. "In essence, the later the decision to raise the price of subsidized fuel, the greater the burden."

    Hanung Budya, Pertamina's marketing and commercial director, said this year's subsidized fuel consumption would exceed the government's pegged quota. As of Tuesday night, Aug. 26, the government stopped the restriction of subsidized fuel distribution to gas stations following fuel shortages in a number of retail outlets.