JAKARTA. The government is likely to maintain fuel prices at current levels despite the global crude oil price redescending to the depths it plumbed earlier this year, a senior official has said. Energy and Mineral Resources Minister Sudirman Said argued that maintaining the price level would help compensate losses incurred by state-owned oil and gas giant Pertamina. “Pertamina has suffered a total deficit of up to Rp 12 trillion [US$892 million] from selling fuel lower than the economic price. Therefore, even though the world crude price is declining, we won’t automatically lower fuel prices,” Sudirman told reporters on Friday. The government currently makes three-monthly adjustments to Premium-branded gasoline and diesel distributed mostly by Pertamina. The adjustment is based on a policy implemented earlier this year following the government’s decision to remove subsidies on gasoline and apply a fixed subsidy for diesel.
Govt won't cut fuel price even as crude plunges
JAKARTA. The government is likely to maintain fuel prices at current levels despite the global crude oil price redescending to the depths it plumbed earlier this year, a senior official has said. Energy and Mineral Resources Minister Sudirman Said argued that maintaining the price level would help compensate losses incurred by state-owned oil and gas giant Pertamina. “Pertamina has suffered a total deficit of up to Rp 12 trillion [US$892 million] from selling fuel lower than the economic price. Therefore, even though the world crude price is declining, we won’t automatically lower fuel prices,” Sudirman told reporters on Friday. The government currently makes three-monthly adjustments to Premium-branded gasoline and diesel distributed mostly by Pertamina. The adjustment is based on a policy implemented earlier this year following the government’s decision to remove subsidies on gasoline and apply a fixed subsidy for diesel.