Indonesia to Cut Prices of Several Fuel Products

Indonesia to cut prices of several fuel products

JAKARTA, Nov. 18 (Xinhua) — Indonesia’s state-run oil and gas firm Petamina plans to lower prices of several fuel products beginning next week in line with the decline in global oil prices, an executive said Friday.

Only fuel products sold at the market price, or without government subsidy, will enjoy the price cut, Pertamina’s head of fuel division Achmad Faizal told reporters.

The products include Pertamax and Pertamax Plus, gasoline of premium quality now sold at 5,700 rupiah (57 US cents) per liter and 5,900 rupiah (59 cents) per liter, respectively.

“We plan to cut price by around 3 percent,” he said.

Faizal said the company also would cut prices of fuel for industrial uses but he didn’t elaborate.

In an attempt to cut the subsidy loads, the government on Oct. 1 raised prices of gasoline, diesel and kerosene by average 126 percent.

Under the new ruling, gasoline is sold at 4,500 rupiah (45 cents) per liter, diesel 4,200 rupiah (42 cents) per liter and kerosene 2,000 rupiah (20 cents) per liter.

Prices of high quality products and fuel for industry are left to the market pricing system. Pertamina uses the Mid Oil Plats Singapore (MOPS) as its reference.