Pertamina ups fuel prices for industries

The Jakarta Post ,  Jakarta   |  Thu, 05/15/2008 12:35 PM  |  Business

State oil and gas firm PT Pertamina will raise the price of industrial fuels by up to 4.3 percent starting Thursday in response to continually increasing global oil prices.

Pertamina announced in a release sent to The Jakarta Post on Wednesday bunker oil would gain the most, with a 4.3 percent rise to Rp 6,205 (67 U.S. cents) a liter, while gasoline would jump 2.1 percent to Rp 8,345 a liter.

Kerosene will increase 1.2 percent to Rp 9,988 a liter, while diesel fuel for transportation and industry will climb 1.4 percent and 1.2 percent to Rp 10,107 and Rp 9,717, respectively.

The price of Pertamax premium fuel rose on Wednesday in Jakarta by Rp 250 a liter to Rp 9,250.

Pertamina cited the increase in global oil prices and the recent depreciation of the rupiah against the U.S. dollar as the two main reasons for the increases.

Throughout the recent period that has seen surging global oil prices, Pertamina has updated its fuel prices for its industrial customers every 15 days.

Pertamina vice president for fuels Djaelani Sutomo said, as quoted by Detikfinance, he estimated Pertamax sales would decrease 20 percent this year to 400,000 kiloliters (kl) from 500,000 kl last year, due to the huge gap in price between Pertamax products and subsidized gasoline.

However, Pertamina has said it hopes the situation will improve on the government's plan to increase the price of subsidized fuels in June.

Under plan, the government may increase subsidized premium gasoline from Rp 4,500 to Rp 6,000, and diesel for transportation from Rp 4,300 to Rp 5,500.

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