Pertamina, Shell lower prices of non-subsidized fuels
Following declining global oil prices in the past several months, state-run oil and gas firm Pertamina and Anglo-Dutch Shell cut the prices of non-subsidized fuels.
Starting June 1, Pertamina’s Pertamax and Shell’s Super (octane 92) fuels will be sold at Rp 9,250 (around 97 US cents) per liter, down from Rp 9,700 and Rp 9,800 in May. Pertamax 92 touched Rp 10,200 per liter in April, triggering buyers to shift to government-subsidized fuel.
Pertamina’s Pertamax Plus (octane 95) is currently being sold at Rp 9,900 per liter versus Rp 10,100 earlier, while the price of a similar quality Shell Super Extra that had been set slightly lower at Rp 9,850 per liter, compared with Rp 10,200 previously.
Pertamina spokesperson Mochamad Harun said the company fulfilled its promise to continuously adjust the prices of non-subsidized fuels based on the movement of global oil prices.
“When global prices fall, we have to reduce the price of our non-subsidized fuel. It’s common fluctuation,” he told reporters on Friday. “We hope with the declining prices, the consumption of non-subsidized fuels can be higher than the previous period.”
The Indonesian Crude Price (ICP), which has become a main component in determining fuel prices, fell to $119.35 per barrel as of May 28, down from $124.65 in April and $128.14 in March.
ICP movement is in line with global oil prices, which dropped to near $100 per barrel from over $120 within two months on renewed fears of eurozone debt contagion and Middle East supply disruptions.
Pertamina regularly reviews the price of its non-subsidized fuels every two week, but in certain cases, the price is subject to change at any time.
Harun was optimistic that the non-subsidized fuel consumption would increase because the difference between its price and the subsidized fuel’s price has become narrower. The government has also banned government vehicles from buying subsidized fuel.
On the program to cut subsidized fuels consumption, Pertamina announced it had started the application of the point of sales (PoS) system in 25 fuel stations in South Kalimantan.
The system would record the identity of each vehicle and its owner as well as the amount of its consumption. The recorded data would be used to strengthen supervision on the distribution of subsidized fuels and minimize the possibility of misappropriation.
“Currently, our president director [Karen Agustiawan] is in Banjarmasin [in South Kalimantan] to check the readiness of the fuel station. By the end of the month, we hope 110 stations will be implementing the PoS system,” Harun said.
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