TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Ignasius Jonan asserted that prices of subsidized fuels, local known as premium and solar, will not be increased in the period of April-June 2017.
“We will strive to maintain [fuel prices] from April to June,” Jonan said at the Energy Building in Jakarta on Friday, March 24, 2017.
Jonan explained the government would strive to maintain fuel prices since fuel retail prices were not reduced when the international oil price went down to US$40 last year.
“So Pertamina has reserves that can be used when the international crude price increases,” Jonan added.
Ministry’s oil and gas director general I Gusti Nyoman Wiratmaja added that fuel prices should be maintained at the current level to promote the national economic stability. “Although retail fuel prices are below Pertamina’s economic prices,” he said.
However, Wiratmaja believes that Pertamina’s losses will not last for long since international crude is expected to decrease. Currently, London’s Brent and the United States West Texas Immediate (WTI) prices are at US$50.56 per barrels and US$47.7 per barrels, respectively.
“We will need to see the extent of the decrease,” Wiratmaja said.
The last fuel prices evaluation was conducted on January 1, 2017. At that time prices of premium and solar were set to remain at Rp6,450 and Rp5,150 per liter, respectively. The prices included the value added taxes (PPN) and vehicle fuel taxes (PBBKB).
GHOIDA RAHMAH
