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Pertamina ready to set premium prices based on market mechanism
State oil and gas company Pertamina said it was ready to implement government policies that intend to release premium prices based on a market mechanism
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tate oil and gas company Pertamina said it was ready to implement government policies that intend to release premium prices based on a market mechanism. Pertamina president director Dwi Soetjipto said the company was waiting for the government's fuel pricing policies to take effect.
'We are waiting for the government's measures. We are ready to go ahead with this because it is being done for the sake of the people,' he said as quoted by Antara after attending a meeting with Energy and Mineral Resources Minister Sudirman Said in Jakarta on Tuesday.
On Wednesday, the government plans to announce new fuel prices that will take effect on Jan. 1, 2015. Currently, the price of premium (subsidized by the government) is Rp 8,500 (68 US cents) per liter while subsidized diesel is selling at Rp 7,500 per liter.
Pertamina sales and marketing director Ahmad Bambang said the government's policy to set fuel prices based on a market mechanism would be conducted during a transitional period.
'In the meeting, a solution was agreed upon: In Java, the premium price will be established in line with the market price while in areas outside Java there will be distinct guidelines for Pertamina,' he said.
The director further explained that Pertamina would be compensated for premium distribution costs in areas outside Java. 'Therefore, premium selling prices outside Java will not be much higher than the prices within Java,' said Ahmad.
By setting the premium prices in line with the market mechanism, Ahmad said the government was set to impose a fixed subsidy for diesel. (ebf)(++++)
