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Jakarta Post

Pertamina expands single fuel price program to 161 locations

  • Norman Harsono

    The Jakarta Post

JAKARTA   /   Thu, October 3, 2019   /   02:04 pm
Pertamina expands single fuel price program to 161 locations Poor road conditions in isolated regions, such as in some parts of Papua, drive fuel prices up to Rp 100,000 (US$7.05) per liter, which is more than 10 times subsidized gas prices in Jakarta. (Pertamina/Pertamina)

State-owned energy company Pertamina has added this year 37 new locations for its single fuel price program, bringing the 3-year-old program’s total reach to 161 locations as of October.

Pertamina spokeswoman Fajriyah Usman said in a statement that the locations covered by the single price program were Papua (33 locations),  Maluku (17), Nusa Tenggara (25), Sulawesi (18), Kalimantan (35) Sumatra (28) and Java – Bali (5). In other words, 96.9 percent of the locations were outside Java.

“We sped up accomplishing the target of having [161] locations by October [instead of December] and all of them are either fully operational or testing operations,” she said.

The program, launched in 2017, is intended to cut fuel prices in isolated regions, such as Papua – at the archipelago’s eastern end. In some parts of Papua, fuel prices previously reached as high as Rp 100,000 ($7.05) per liter due to high logistic costs.

Pertamina says that under the single price program,  gasoline in such regions is sold at Rp 6,450 per liter and diesel for Rp 5,150 per liter,  similar to fuel prices in Jakarta. However, in certain areas, customers can only enjoy such prices once or twice a month due to supply chain restrictions.

The company did not mention its latest fuel distribution volume under the program but it was last recorded at 76,400 kiloliters in January-June.