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Pertamina pushes for higher diesel prices in 2017
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Fuel stop: Motorists refuel at a Pertamina gas station in Jakarta. (thejakartapost.com/Anton Hermansyah)
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mid the increasing trend of global oil prices, state-owned oil and gas company Pertamina has urged the government to increase the price of subsidized diesel, known locally as Solar, in 2017 to avoid further losses from the sales of the product.
Pertamina deputy president director Ahmad Bambang said on Tuesday that the company expected the price of Solar to increase by Rp 500 (4 US cents) to Rp 5,650 per liter next year.
“Actually the price [of diesel fuel] should have increased in October. Since September, we have incurred losses in Solar sales at Rp 700 per liter, as we’re selling it at Rp 5,150 per liter […] Now, does the government dare to increase the price?” he told reporters in Jakarta.
The expected increase in diesel price would be in line with improving world oil prices, which the company predicted to reach $55-60 per barrel next year. It is also considering the fact that members of the Organization of the Petroleum Exporting Countries (OPEC) agreed to slash output by 1.2 million barrels per day (bpd) from Jan. 1.
Global oil prices have been in free-fall from around $110 per barrel of Brent crude in June 2014 to around $40 in the middle of this year. The price has continued to fluctuate and recently stood at around $50 per barrel. (win/hwa)
