TEMPO.CO, Jakarta - The government has decided to keep fuel oil prices unchanged as of September 1 despite the current slump in global oil prices.
The main consideration for maintaining fuel oil prices is to keep economic stability, the Director General of Oil and Gas at the Energy and Mineral Resources Ministry, I Gusti N Wiratmaja, said on Friday.
"The other consideration is reducing the losses suffered by state oil and gas company PT Pertamina assigned by the government to supply and distribute fuel oil," he said.
Pertamina had claimed earlier that it suffered a potential loss of Rp12 trillion during the January to July 2015 period as it had sold premium gasoline below the economic price.
The government has also decided to maintain the prices of premium gasoline outside Java, Madura and Bali at Rp7,300 per liter, subsidizeddiesel oil at Rp6,900 per liter, and kerosene at Rp2,500 per liter. The new prices will take effect as of September 1 at 00:00 local time.
Pertamina will set the new prices of fuel oils for Java, Madura and Bali in coordination with the government by taking into account the social andeconomic conditions of the public.
The new prices of fuel oils are higher than the economic prices following a slump in global oil prices to US$40 per barrel.
"The positive difference between the fuel prices and their economic prices will be used as savings to support energy security and build infrastructure," he said.