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Jakarta Post

Pertamina pushes down fuel prices in nine remote areas

News Desk (The Jakarta Post)
Jakarta
Mon, March 6, 2017

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Pertamina pushes down fuel prices in nine remote areas A worker prepares to fill the fuel tank of a vehicle at a gas station. (Kompas.com/-)

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tate-owned energy company Pertamina has managed to push down the fuel prices in nine remote regencies as part of the government’s one-fuel price policy that will gradually be implemented in all regions across the country.

The aformentioned nine regencies are located in North Sumatra, West Sumatra, Central Java, East Java, West Nusa Tenggara, East Nusa Tenggara, Southeast Sulawesi, West Papua and East Kalimatan.

In accordance with the policy, fuel prices in the nine remote regencies are now the same as those in urban areas – Rp 6,450 (48 US cents) for gasoline and Rp 5,150 for diesel fuel.

Before the policy, initiated by Presdient Joko “Jokowi” Widodo, was implemented, the price of subsidized gasoline (premium) was generally between Rp 8,000 and Rp 15,000 and the price of diesel between Rp 7,000 to 18,000.

The policy was based on an Energy and Mineral Resources Ministerial Regulation (Permen ESDM) issued on Jan. 1 with the the objective of pushing down the prices of fuels in 148 regencies. The policy will be gradually implemented from 2017 to 2020.

Pertamina vice president for corporate communications Wianda Pusponegoro said the company had carried out mapping activities in the 148 regencies with fuel prices that will be equalized.

“From the mapping activities, up to March 2, we have decided upon 53 regions where we will soon implement the one-fuel price policy,” said Wianda as reported by kompas.com on on Mondy

She added that the considerations being taken into account in its selection of regions eligible to receive the one-fuel price policy included the availability of transportation, infrastructure and also local investors that could be appointed as business partners. (bbn)

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