Public Fuel Prices Drop following New Ministerial Regulation

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 018.Pers/04/SJI/2020

Date: 6 January 2020

Public Fuel Prices Drop following New Ministerial Regulation

The corporate action by Public Fuels (JBU) providers through price adjustments in early January 2020 is one of the impacts of EMR Ministerial Decision Number 187 K/10/MEM/2019 on the Basic Price Formula in Calculating the Retail Sales Price of Gasoline and Solar Diesel Distributed via Public Gas Stations and Fishermen Gas Stations, signed on 7 Ocober 2019.

As of 5 January 2020, PT Pertamina (Persero) lowers gasoline RON 92 or the so called Pertamax to Rp9,200 per liter from the previous price Rp9,850 per liter. Previously on 1 January 2020 Shell also lowered its RON 92, the Shell Super, to Rp9,300 per liter from Rp10,250 per liter. Meanwhile, Total Indonesia lowered its Performance 92 from Rp10,200 per liter to Rp 9,250 per liter on 3 January 2020.

"One of the main factors of this price drop is the ministerial regulation which starts to apply on 1 January on all businesses providing public fuels," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR Agung Pribadi at the Ministry's office in Jakarta, Monday (6/1).

Agung says Ministerial Regulation Number 187 K/10/MEM/2019 reduces the upper constant in the sales price formula for gasoline below RON 95 and Solar CN 48, from previously Rp2,542 per liter to only Rp1,000 per liter. With this new constant, it is natural the JBU sales price on the market drops, because the sales price is the sum of MOPS, constant, business entity's margin of 10% maximum, 10% VAT, and fuel tax (PBBKB).

The upper constant for gasoline RON 95 and RON 98 as well as Solar CN 51 also decreases, from previously Rp3,178 per liter to Rp1,200 per liter.

"Although the market prices rise, the constants for public fuels fall by more than 60%; this is what corrects the prices, making them lower."

In addition to RON 92, the prices of several other fuels fall, for example, Shell V-Power RON 95 is sold for Rp9,950 per liter from previously Rp 11,600 per liter and Total Performance 95 from Rp11,550 per liter to Rp 9,900 per liter.

For RON 90, Shell lowers the price to Rp9,200 per liter from Rp9,900 per liter. Meanwhile, Total Indonesia adjusts its RON 90 fuel price to Rp9,150 per liter from Rp9,900 per liter. The price of Pertalite at Pertamina's gas stations is stable at Rp7,650 per liter.


Special for Pertamina's gas stations, prices of several gasoline and diesel fuels are lowered, too; for example Pertamax Turbo (RON 98) drops to Rp9,900 per liter from the previously Rp11,200 per liter, Dexlite CET 48 from Rp10,200 per liter to Rp9,500 per liter, and Pertamina Dex CET 51 to Rp10,200 per liter from Rp11,700 per liter. Non-subsidized Biosolar CET 48 is stable at Rp9,300 per liter. These prices applied at gas stations located in Jabodetabek areas, while for other areas, prices may be different.

The government hopes the price adjustment can lift people's purchasing power in the middle of the global economic pressure. "We hope this can become a stimulus to lift people's purchasing power," Agung concluded. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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