and gas firm PT Pertamina has increased prices for non-subsidized fuels,
starting Sunday, due to the skyrocketing global prices for crude oil.
spokesman M. Harun said Sunday that the increased prices reflected fluctuations
in the market.
the price of non-subsidized fuels every two weeks, on the first and fifteenth
days of each month. The changes depend on market conditions," he told The Jakarta Post in a telephone
The price of RON
92 Pertamax high-performance gasoline has gone up to Rp 10,200 (US$1.11) per
liter, from Rp 9,850. Meanwhile, RON 95 Pertamax Plus is now being sold at Rp
Harun said the price
increases could potentially lead to problems.
"A lot of
people might be discouraged from buying Pertamax. They might instead buy
subsidized fuels, which are much cheaper," Harun said.
fuels, premium gasoline and diesel, are currently sold at Rp 4,500 per liter.
people rushing to buy subsidized fuels, it may force the government to re-adjust
its yearly quota for subsidized fuels," Harun said.
cap right now is 40 million kiloliters for the entire year. But in the past
three months, since January, 10.7 million kiloliters have already been
Harun said that
if people rushed to buy subsidized fuels, the government would have no choice
but to increase the quota.
"We are sure
that it will happen," Harun said.
The cost of fuel
subsidies are tied to the Indonesian Crude Price (ICP), which is set at US$105
per barrel, although Harun said the benchmark has reached $122 as of February.
alleviate the burden, the government has been working on a fuel conversion
program to encourage the public to shift from oil-based fuels to using
gas-based fuels such as liquefied petroleum gas (LPG).
Harun said that,
so far, there has been no plan to increase LPG prices. (png)