The Government Has Spread “Code”, Pertamax Price Will Soon Rise? page all

JAKARTA, KOMPAS.com – The price of world crude oil which continues to rise to above 100 US dollars per barrel will have an impact on the price of fuel oil (BBM).

Minister of Finance Sri Mulyani Indrawati, Special Staff to the Minister of SOEs Arya Sinulingga, and the Ministry of Energy and Mineral Resources (ESDM) have given “codes” to allow PT Pertamina (Persero) to increase prices Pertamax.

Initially, the Ministry of Energy and Mineral Resources stated that the economic price of RON 92 fuel or the equivalent of Pertamax was Rp. 14,526 per liter. However, Pertamina is known to still sell Pertamax at a price range of Rp 9,000-Rp 9,400 per liter.

Also read: Many Luxury Cars Drink Pertamax, Stafsus Erick Suggests Prices to Increase

The Head of the Bureau of Communication, Public Information Services and Cooperation, Agung Pribadi, said the selling price of RON 92 fuel at gas stations did vary depending on business entities. He said that currently all gas stations sell RON 92 in the range of Rp. 11,000-14,400 per liter, only Pertamina which is still in the range of Rp. 9,000 per liter.

“For the price of general types of fuel, it is indeed set by business entities, the important thing is that it should not exceed the upper limit set at Rp. 14,526 per liter for March 2022,” he said in a written statement Monday (21/3/2022).

The suggestion to readjust the selling price of Pertamax was also made by the Special Staff of the Minister of SOEs, Arya Sinulingga. According to him, if Pertamax is still sold at a price of around Rp. 9,000 per liter, it means that Pertamina is subsidizing luxury cars.

He said the portion of Pertamax consumption was around 13 percent of the total national fuel consumption, most of which users were wealthy people or luxury car owners.

Also read: Pertamax price is recommended to increase, but not to exceed competitors’ prices

“So it can be said that currently Pertamina is subsidizing Pertamax. This clearly means, Pertamina is subsidizing luxury cars that use Pertamax. So this needs to be recalculated so that there is justice, don’t let Pertamina give large subsidies to luxury cars that use Pertamax,” said Arya to the media, Tuesday (22/3/2022).

Meanwhile, Finance Minister Sri Mulyani commented that Pertamax has been consumed by the upper class. He considered that Pertamax could be affected by the increase in world oil prices because it is included in non-subsidized fuel.

Also read: Stafsus Erick Thohir: Need to Recalculate the Selling Price of Pertamax

“Pertamax could be affected by the increase in world oil prices because it includes unsubsidized fuel and it is consumed by the upper class,” he said in the CNBC Indonesia Economic Outlook 2022 event, Tuesday (22/3/2022).

Observers also judge Pertamax price need to be readjusted, considering that there is a high gap between the selling price and the economy. It is said that the increase in the price of Pertamax will not interfere with people’s purchasing power because the consumers are wealthy.

Research Director of the Center of Reform on Economics (Core) Indonesia Piter Abdullah said that the Pertamax price adjustment is not expected to interfere with people’s purchasing power, so it will not have much impact on macroeconomic indicators.

Also read: What is Pertamax’s real economic price?

“The price of Pertamax should ideally increase according to its economic price. As long as the increase is not subsidized fuel, Premium and not Pertalite, the increase in fuel prices will not have much impact on inflation,” said Piter in his statement, Tuesday (15/3/2022).

Likewise, observer of Energy Economics at Gadjah Mada University (UGM) Fahmy Radhi, who believes that the selling price of Pertamax should follow its economic price. If the price of Pertamax is not increased, Pertamina’s burden will be even heavier.

According to him, the increase in Pertamax prices will have little impact on inflation. This is because Pertamax’s consumption portion is around 12-13 percent of the total national fuel consumption, most of which are middle to upper class users.

“The increase in Pertamax does risk increasing inflation, but the contribution is small,” said Fahmy to Kompas.com, Tuesday (22/3/2022).

Energy Sector Researcher from the Purnomo Yusgiantoro Center (PYC) Massita Ayu Cindy suggested that the price increase of Pertamax could be up to Rp 12,000 per liter. The magnitude of the increase in the price of Pertamax is said to be a momentum to take the market away from competitors whose prices have already been raised.

“Maybe Rp 12,000 per liter, but if you want to take a competitor’s market share, it’s below that,” Massita told the media virtually, Tuesday (22/03/2022).

Also read: Economist: Non-subsidized Fuel Prices Should Follow Market Prices

Pertamina’s Response

Responding to this condition, Pertamina Subholding Commercial And Trading Corporate Secretary Irto Ginting said that his party was still conducting studies related to the high gap between selling prices and the economy.

He is also not sure whether Pertamina will increase the selling price of Pertamax in the near future to adjust it to the economic price.

“It’s still us review“he told Kompas.com, Tuesday (22/3/2022).

Also read: Non-subsidized Fuel Price Adjustment Protects Domestic Market from Scarcity of Supply

Get updates news of choice and breaking news every day from Kompas.com. Let’s join the Telegram group “Kompas.com News Update”, how to click the link https://t.me/kompascomupdate, then join. You must first install the Telegram application on your cellphone.–